Bitcoin has faced sustained downward pressure in recent weeks, recording losses in six of the past seven trading sessions and poised for another red day. Over the last eight days, BTC has dropped more than 14%, falling below the $100,000 and $95,000 support levels to trade below $90,000. It has since rebounded to around $91,367 in the hours leading up to press time.
Saylor Remains Unfazed by Bitcoin’s Downtrend
Despite the market slump, Michael Saylor’s Strategy (formerly MicroStrategy) has remained resolute, continuing to view price dips as major buying opportunities. On Monday, Saylor revealed that the company purchased an additional 8,178 BTC for $835.6 million at an average price of $102,171 per bitcoin.
With this purchase, Strategy’s total holdings have risen to 649,870 BTC, representing roughly 3.2% of Bitcoin’s circulating supply and cementing the company’s position as the largest corporate Bitcoin holder.
So far, the company has spent $48.37 billion on its accumulation, and at the current BTC price of $91,367, its holdings are valued at $59.38 billion, reflecting an overall gain of 22.7%.
40% of Strategy’s Bitcoin Portfolio in the Red
However, a recent analysis by CryptoQuant shows that about 40% of Strategy’s Bitcoin portfolio is currently at a loss. This drawdown is largely driven by the company’s latest purchase of 8,178 BTC, which has already resulted in an $88 million unrealized loss due to the steep price decline. Consequently, it has pushed the return on that batch down to -10.5%.
Notably, this is one of three acquisitions the company made this month despite Bitcoin’s pullback. Earlier this month, Strategy announced the purchases of 397 BTC for $45.6 million, and another 487 BTC for $49.9 million.
In total, the company has added 9,062 BTC worth $931.1 million in November alone. At current prices, this tranche is valued at approximately $827.96 million, showing an 11% loss, which contributes to the broader 40% drawdown on its portfolio. However, the remaining 60% is currently in profit, according to CryptoQuant.
Strategy Still in a Strong Position
Despite short-term losses, Strategy remains in a strong overall position with $11.46 billion in total unrealized profit. This isn’t the company’s first major drawdown.
For context, between mid-2022 and early 2023, it faced an even steeper drop, with its Bitcoin holdings down 75% at one point and showing unrealized losses of around $1.32 billion. The market eventually recovered in late 2023, moving into a sustained uptrend.
Evans Kelvin
Brenda Kanana
