Bitcoin (BTC) briefly fell below $75,000 on Feb. 1, pushing Strategy's 712,647-coin treasury into unrealized losses that momentarily approached $1 billion before the cryptocurrency staged a modest rebound.
What Happened: Strategy Treasury Dips Into Red
The world's largest corporate Bitcoin holder saw its position slip underwater during early Asian trading hours when BTC touched $74,544 on Binance.
Strategy, led by Executive Chairman Michael Saylor, acquired its holdings at an average cost of $76,037 per coin. At that session low, paper losses briefly swelled to nearly $1 billion before narrowing to approximately $150 million as prices recovered to around $75,826.
The firm remains committed to its accumulation strategy. Saylor has signaled additional purchases that would mark the company's fifth BTC acquisition of 2026, following its largest buy of 22,305 coins on Jan. 20.
To fund continued buying, Strategy raised the dividend rate on its Series A Perpetual Stretch Preferred Stock to 11.25% effective February. Proceeds from STRC sales have financed more than 27,000 BTC in acquisitions.
Other corporate holders also face pressure. Metaplanet shows unrealized losses of 30.13%, Strive reflects a 28.97% drawdown, and GD Culture Group sits at a 35.59% paper loss, according to BitcoinTreasuries data.
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Why It Matters: Institutional Conviction Tested
Bitcoin now trades below the US ETF Realized Price, meaning spot ETF investors are on average holding at a loss, according to CryptoQuant data.
Analyst PlanB noted Bitcoin's 200-week moving average sits near $58,000, while realized price has declined to approximately $55,000. "However bull has been weak (no red) so bear might be shallow," he added.
Veteran trader Peter Brandt questioned how long investors would remain aboard, posting: "When on this journey will investors want to start jumping from the Sayl_boat?"
The coming weeks may prove critical for institutional holders should prices remain depressed near long-term support levels.