MicroStrategy Faces $3.86B Bitcoin Loss Amid Market Decline

MicroStrategy, the largest corporate holder of Bitcoin, is under pressure as its aggressive accumulation strategy, led by Michael Saylor, faces a $3.86 billion unrealized loss. The company’s massive Bitcoin purchases, once seen as a bold move, are now a major risk as the market experiences a sharp downturn.

Since early 2025, MicroStrategy has invested $5.3 billion in Bitcoin, but the cryptocurrency has fallen more than 13%, slipping below the $95,000-$105,000 range where the company made recent purchases. Bitcoin critic Peter Schiff argues that the drop could have been steeper without Saylor’s continued buying. He also questions what would happen if MicroStrategy were forced to sell.

Investor sentiment remains hopeful, with many believing Bitcoin will recover, as it has in the past. However, technical indicators and macroeconomic trends suggest a further decline to the $50,000-$60,000 range is possible, which would push MicroStrategy’s holdings below their cost basis.

For now, the company remains committed to its Bitcoin strategy, but continued losses could force difficult financial decisions. If MicroStrategy changes course, it could trigger even greater volatility in an already uncertain market.