Strategy’s 649,870 Bitcoin holding just took a brutal hit

Michael Saylor’s Strategy might be heading towards a huge trouble as its massive Bitcoin war chest is suddenly looking a lot less invincible. After Bitcoin slipped under $90,000 for the first time in seven months, almost 40% of the company’s BTC stack is sitting in the red. It holds around 649,870 Bitcoin in the bag.

Bitcoin’s slide hit the MSTR even harder, as just a few days ago, Michael Saylor announced another big buy. It bought another 8,178 BTC at an average price of $102,171. With Bitcoin now trading near $92K, that single purchase alone is down nearly $100 million. However, the cumulative crypto market is dealing with high selling pressure as sentiment goes back into “Extreme Fear” territory.

Saylor’s Bitcoin bet cracks

At $106K, Strategy’s stash was roughly 90% in profit. Data shows that the profitability has collapsed to around 60% while critics are circling. This fresh buy comes amid intense pressure on Strategy’s stock ($MSTR). Its share price had dipped around 55% from its peak earlier this year. MSTR traded around $206.8 in the last session.

Source: CryptoQuant

The stock’s recently declined to its lowest level since October 2024. This led to an estimated $72 billion market value wipeout. It has already raised huge concerns among investors about the sustainability of its highly leveraged, Bitcoin-heavy business model. MSTR share price is now down by almost 50% in the last 6 months.

Peter Schiff, long-time Bitcoin critic, wasted no time calling Strategy’s entire model “a fraud.” He even challenged Saylor to a debate at Binance Blockchain Week in Dubai this December. In an X post, he stated that “Regardless of what happens to Bitcoin, I believe MSTR will eventually go bankrupt.”

Schiff also took a shot from his favorite angle. With gold still trading above $4,000/oz, he pointed out that Bitcoin is now down 40% priced in gold. He argued that the “digital gold” narrative is collapsing under pressure. “Those who bought into it will sell,” he added.

BTC’s slide keeps market on edge

Bitcoin is trading down by more than 25% from its all-time high of over $126,000. It has dipped below multiple psychological levels and is ripping through leveraged traders on its way down. Saylor, who’s normally very social when BTC prints green, has been unusually quiet during this drawdown. However, he recently posted “₿elieve” and “HODL,” but Strategy hasn’t said anything about the unrealized losses piling up.

As US stocks slide and the Nasdaq bleeds, Bitcoin managed to claw back above $93,500 but dipped back later. BTC price has slumped by 10% in the last 7 days. Despite the fresh recovery, Bitcoin is trading at an average price of $92,617 at the press time.

The global crypto market rejoiced at the minor recovery rally. Its cumulative market cap jumped by 1.5% to stand at $3.16 trillion. Its 24-hour trading volume is up by 3% to hit $211 billion. The major altcoins like Ethereum, XRP, and Solana also posted green indexes. ETH and XRP prices jumped by over 3% in the last 24 hours. Solana bagged more gains than others as its price spiked by 7% in the same period.