Bitcoin has to fall this low for Michael Saylor’s Strategy to lose money
The post Bitcoin has to fall this low for Michael Saylor’s Strategy to lose money appeared on BitcoinEthereumNews.com.
Strategy (NASDAQ: MSTR) – formerly known as MicroStrategy – has been suffering from a period of stock market decline in recent trading. Specifically, MSTR shares experienced a 5.57% drop on Friday, March 7, to their latest closing price of $287.18, and an equally sharp collapse of 5.46% in the extended session, leading to the Monday pre-market value of $271.50. MSTR stock 1-day and Monday pre-market price chart. Source: Google With Michael Saylor’s company facilitating investor exposure to Bitcoin (BTC) via vicarious ownership, it should come as no surprise that BTC’s own decline from $86,773 on Friday to $83,126 at press time has been one of the main reasons behind the stock price drop. How safe is Strategy from a Bitcoin unrealized loss Still, despite Strategy making numerous headlines in recent months thanks to its buying of a vast quantity of Bitcoin near the cryptocurrency’s all-time high (ATH), shareholders do not yet have to fear that the company would face losses due to the coin’s price decline. Indeed, Michael Saylor’s firm has, essentially, been dollar-cost-averaging (DCA) into its vast BTC treasury and, though there is some variance between sources, has significant room before taking an unrealized loss on its digital assets. Strategy’s average Bitcoin purchase price is estimated as within the $62,473 – per BiTBO – and $66,357 – per Lookonchain. Given that BTC is changing hands at $83,126 at press time, an unrealized loss remains relatively distant for Strategy despite the $9,585 weekly drop, hinting that a risk does exist. BTC one-week price chart. Source: Finbold Why Bitcoin price is falling Bitcoin’s drop – a key driver behind MSTR’s stock price fall – can be linked to several external factors. Cryptocurrencies have been relatively reactive to macroeconomic news. President Donald Trump’s escalating and ever-shifting trade war has, so far, generated…
Filed under: News - @ March 10, 2025 3:23 pm