Strategy Faces Record $11B Unrealized Loss as It Sold Bitcoin for First Time in Years

Strategy, formerly known as MicroStrategy, is facing a record $11B unrealized loss on its Bitcoin holdings, with its massive Bitcoin bet now $10.8 billion underwater as its stock collapses 77% from peak highs.

“Strategy (NASDAQ:MSTR | MSTR Price Prediction), the company formerly known as MicroStrategy sold 32 Bitcoin for $2”

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The company holds 843,706 BTC with a total cost basis of approximately $63.8 billion, and as of early June 2026 those coins are worth about $53 billion, a gap roughly 17% below what the company paid.

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Strategy’s average acquisition cost sits at approximately $75,700 per Bitcoin, and with Bitcoin trading well below that level, every single coin the company bought on average is now worth less than what it paid for it.

In late May 2026, Strategy sold Bitcoin for the first time in years, selling 32 BTC at an average price of $77,135 for about $2.5 million, with proceeds going toward distributing dividends on its STRC preferred stock.

Michael Saylor said the pressure reflects a capital rotation, pointing to what he describes as around $400 billion flowing into AI infrastructure and spot Bitcoin ETFs experiencing outflows during the period.

Bitcoin fell 21% after Strategy’s debt buyback news, as the company used $1.38 billion of cash raised by recent equity issuances to buy back some of its convertible debt, temporarily pausing its Bitcoin accumulation.

TradingView said Strategy had been the largest known Bitcoin buyer, accumulating 126,016 BTC for $9.31 billion since March, but the debt buyback coincided with STRC distancing itself from $100.

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TradingView also said Strategy’s cash position has been reduced to $900 million, enough to cover dividends for 6 months, while its 11% net leverage is the key metric to monitor for forced BTC liquidations.

The article framed the risk as whether Strategy could be forced to liquidate some of its Bitcoin holdings, noting that there is no contractual floor set in Strategy’s convertible debt that would force a Bitcoin reserve liquidation.

Cointelegraph added that Saylor pushed back on the bearish read, saying mounting ETF outflows are “pressuring BTC,” and that capital markets have poured $400 billion into AI infrastructure over the past six months.

Beyond Strategy’s balance sheet, Bitget reported that crypto market structure legislation faces a limited Senate timetable before lawmakers depart for the July recess, with the U.S. Senate expected to resume work on the CLARITY Act this week.

Bitget said the legislation’s “Crypto Clarity Window” is a “critical four-week window,” and that regulatory definitions for digital assets remain a central issue as lawmakers revisit crypto legislation.

The same Bitget piece tied timing to election-year shifts, noting that delays could extend consideration into a different election cycle and that “Midterm elections often reshape congressional priorities and leadership.”

For Strategy, the stakes are immediate because its stock is trading as a leveraged Bitcoin proxy, with the Crypto Briefing describing a 77% decline from peak prices and a $10.8 billion unrealized loss.

Cointelegraph also reported Standard Chartered’s view that a Bitcoin market bottom may be near, saying it would be a tentative sign the low has been printed and that selling over the weekend will be muted if Strategy’s next purchase signals support.