Strategy is sitting on an unrealized loss of about $1 billion as BTC fell below the company's $75,451 average cost.

Table of contents
  • Strategy's Bitcoin holdings turned negative as BTC slipped
  • Bitcoin dropped to about $73,761 late Sunday, its lowest level since August
  • Michael Saylor hinted at another Bitcoin purchase this week

Strategy's Bitcoin holdings reentered the unrealized-loss zone after Bitcoin fell below the company's average purchase price of $75,451. The company is now about $1 billion underwater. Just a month ago, the company had about $10 billion in unrealized profit.

Strategy's holdings move from $10B profit to $1B Loss

The reversal came after a volatile Sunday for Bitcoin. The price fell to about $73,761 late in the day, its lowest level since August. It then recovered to trade above $75,000, before falling back to around $74,000.

A holding is in unrealized loss when its current market value is below what the owner paid. Strategy’s average purchase price is $75,451 per coin. So, with Bitcoin trading near $74,000, the value of its holdings is now below its total cost. 

Bitcoin has been under pressure for a couple of weeks, with the sell-off in US technology stocks worsening matters.

The drop set off forced selling in leveraged futures. According to CoinGlass, over $1 billion in positions were liquidated in 24 hours. Long positions, which are bets that prices will rise, made up $913 million of the total. Ethereum also fell, dropping below $2,100.

Nvidia CEO scandal and stalled Iran talks add pressure

The crypto market decline worsened amid two negative developments over the weekend. The first involved Nvidia, the AI chip company, which is the largest stock by market value. 

Nvidia's board said it opened an independent investigation after reports that CEO Jensen Huang had a relationship with Alice Huang. She is a business executive whom US intelligence agencies believe was passing information to Beijing.

Jensen Huang acknowledged the affair in a message to employees. He wrote that he had been unfaithful to his wife and apologized for the harm caused. This had a ripple effect across the global markets.

The second development came as US Secretary of State Marco Rubio said Iran's demands were "outrageous" and that talks had made no progress, suggesting that the war could be further prolonged.

Saylor hints at another Bitcoin purchase despite losses

Michael Saylor, Strategy's co-founder, hinted on his X page that his firm could be making another purchase this week despite the valuation drop.

The company has often announced a purchase the day after such posts. If the purchase is confirmed, it would be the second weekly buy in a row.

Strategy bought 811 Bitcoin for $65.5 million last Monday, raising its holdings to 849,327 BTC. The purchase was paid for with proceeds from common stock sales. The company also bought back some shares of its STRC preferred stock at the time.

Michael Adeleke is a crypto journalist at CoinCodex with more than three years of experience in crypto journalism. He provides crypto news and market analysis in the easiest way possible to help readers know the latest updates in financial markets. With a background in engineering, he brings strong research and analytical skills to his work.