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.