Strategy, a company focused on Bitcoin (BTC) treasury, recorded an unrealized loss of $10.22 billion in its portfolio on June 4, 2026, following a significant drop in crypto asset prices.
This negative balance represents the largest accounting devaluation in the company’s history since it began accumulating Bitcoin in 2020.
There was a sudden drop in stock prices When the price of Bitcoin fell to the floor of $61,400then experienced a slight recovery, but the price stabilized at today’s $63,593.
It is worth clarifying that the expression “unrealized loss” means that even though the nominal value of the asset on the market is less than its acquisition cost, the economic loss has not been consolidated because the asset has not been sold.
As a result of this price reduction, the company’s total investment is now 16% below the original purchase price. The strategy has reserves of 843,706 BTC. The current market value is $53.65 billion..
The company achieved this business position through transactions totaling $63.87 billion. The invested capital establishes: The company’s average purchase price is $75,705. Keep the price above the current price for each currency unit.
Market fears were further exacerbated when Strategy announced on June 1st that it would sell 32 Bitcoins worth $2.5 million to cover dividends on STRC preferred stock. This transaction marks the first digital asset sale the company has undertaken since 2022.
As reported by CriptoNoticias, as a result of this sale, financial analysis firm BloFin warned that “Strategy’s model with Bitcoin suffers from structural imbalances.” The sale hurt the company’s credibility, according to analysts at the consulting firm. Because the company’s founder, Michael Saylor, preached the premise that assets would be publicly held forever.
“What was broken was the promise, not the policy. Michael Saylor preached ‘never sell’ for years and became a leading champion of that mantra,” the consulting firm emphasizes in a market report. The analysis adds that this move directly changes expectations for predictability across the crypto asset ecosystem.
As a result of Bitcoin’s widespread sell-off and its impact on investor confidence, Strategy stock is currently trading at $130. This price is 75% below the company’s historic high on the stock market.reached $541 on November 18, 2024.
The current situation shows the weakness of the theory of institutional investment, which is based on the absolute immobility of digital reserves. Faced with a complex macroeconomic outlook, the international financial newsletter “Kobeissi Letter” described the severity of the current scenario as “no exaggeration to call it a bear market.”
