Michael Saylor’s aggressive Bitcoin acquisition strategy is showing signs of strain as recent purchases face deep, unrealized losses.
His company, now called Strategy after rebranding from MicroStrategy, has been one of the largest corporate holders of Bitcoin. However, its commitment to relentless accumulation has resulted in a staggering $1 billion unrealized loss as Bitcoin prices struggle to recover.
Strategy’s most recent Bitcoin purchases have placed the company at significant short-term risk. The firm disclosed that it acquired Bitcoin at prices ranging from $95,000 to $106,000 per BTC, but with the cryptocurrency struggling to break above $94,000 and currently trading at $88,000, these investments are deeply in the red.
A particularly costly purchase occurred on January 27, 2025, when Strategy acquired Bitcoin worth $1.11 billion at an average price of $105,596 per BTC. With Bitcoin down more than 16% since then, this single transaction represents the biggest unrealized loss in the company’s history. Despite this setback, Strategy remains committed to its long-term Bitcoin strategy.
A Commitment to Bitcoin Despite Volatility
Strategy has built a reputation for steadfast Bitcoin accumulation, embracing market downturns as buying opportunities. Since August 2020, the firm has amassed 478,740 BTC at an average purchase price of $65,033 per BTC. Over time, this approach has resulted in a total gain of 37.71% on all holdings. However, the recent short-term performance raises questions about the timing of its latest investments.
The firm’s latest 7,633 BTC purchase, made between February 3 and February 9, 2025, came just days after it rebranded from MicroStrategy to Strategy. According to SEC filings, these coins were bought at an average price of $97,255 per BTC. With Bitcoin prices still hovering below this level, Strategy’s latest acquisitions continue to face downward pressure.
The company’s Bitcoin yield, a key performance indicator, has also reflected the struggles of its recent strategy. In the period from January 1 to February 9, 2025, Strategy’s Bitcoin yield stood at 4.1%, a sharp decline from the 74.3% yield reported for the entirety of 2024. The company has since lowered its target yield for 2025 to 15%, signaling a more conservative outlook.
The firm also reported a $670 million net loss in the fourth quarter of 2024, a figure that has heightened concerns among investors. While Bitcoin gains contributed nearly $1.8 billion in the first weeks of 2025, the inability to hold above $100,000 remains a challenge. If Bitcoin prices do not recover, Strategy may need to reassess its approach to accumulation.
The Risk of Aggressive Accumulation
Michael Saylor has long been a vocal advocate for Bitcoin, comparing it to “digital land” and urging the U.S. government to establish a Bitcoin reserve. His unwavering belief has turned Strategy into a Bitcoin ETF-like entity, attracting investors who seek exposure to BTC through traditional markets. However, the firm’s aggressive dollar-cost averaging strategy has increased its exposure to volatility.
Under its ambitious “21/21 plan,” Strategy aims to issue and sell shares to raise up to $42 billion in capital—$21 billion in equity and $21 billion in fixed-income securities—over the next three years to continue its Bitcoin accumulation. This high-stakes approach could yield significant gains if Bitcoin reclaims higher price levels. However, if the cryptocurrency remains under pressure, Strategy’s investors may face growing uncertainty.
Despite its current losses, Strategy has demonstrated resilience in the face of Bitcoin’s volatility. The firm has not engaged in panic-selling and continues to position itself as the largest corporate Bitcoin holder. Whether this unwavering commitment will pay off depends on Bitcoin’s ability to sustain higher price levels. Should the cryptocurrency regain its six-figure valuation, Strategy’s long-term vision may prove successful, but in the short term, its latest purchases remain a risky bet.
