Strategy is carrying its largest unrealized loss ever, more than $10 billion on paper, as Bitcoin (BTC) slides toward $61,000 and drags the treasury into the red.
Key Points:
- Strategy's paper loss on Bitcoin has topped $10 billion, the biggest in its history, after a 17% drop in the position's value.
- Bitcoin fell near $61,000, its weakest since February, while the firm sold 32 BTC for about $2.5 million.
- Michael Saylor calls the selloff a rotation of capital into AI rather than a sign of Bitcoin weakness.
Strategy Logs Record Bitcoin Loss
The company's latest portfolio snapshot shows about $63.87 billion in invested capital against a current value near $53.4 billion. That leaves roughly $10.47 billion in unrealized losses, a 17% decline on the position. The figure stands as the deepest paper loss the firm has ever carried.
The coin fell below $62,000 for the first time since February, down about 28% this year, as forced liquidations and renewed Middle East tension drained risk appetite.
The pressure also broke an old habit. Strategy sold 32 Bitcoin between May 26 and May 31 at an average near $77,135, its first sale since 2022, raising about $2.5 million for preferred-stock dividends as MSTR slid roughly 26%.
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Saylor Frames AI Rotation
Michael Saylor cast the slide as a shift of capital toward AI, not a flaw in the coin. He counted about $400 billion poured into AI over six months against roughly $4 billion in Bitcoin ETF outflows since May 14. "This is a capital rotation, not a Bitcoin impairment," he said.
Not everyone shares his calm: Jim Cramer called the move extreme, while ETF analyst Eric Balchunas flagged May as 2026's heaviest month for Bitcoin ETF outflows, even with lifetime inflows above $55 billion.
PFR Capital analyst Jayson Hu went further, recalling how MicroStrategy's 2000 accounting restatement helped tip the broader market into a crash. He asked whether the firm could rattle investors again, this time through its concentrated Bitcoin bet.
Six-Year Bitcoin Bet
Saylor built the treasury in 2020, converting corporate reserves into Bitcoin as an inflation hedge and turning a software firm into the coin's largest corporate holder. The same executive had paid about $11 million two decades earlier to settle fraud charges tied to that accounting episode, without admitting wrongdoing. Over the six-year buildup the S&P 500 rose about 116%, while MSTR now trades roughly 77% under its 2024 peak, and the firm says it will keep holding.
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