The unrealized loss marks the steepest pressure on Strategy's capital-raising model since the firm accelerated its Bitcoin treasury strategy, raising questions about how it sustains future acquisitions. As of June 21, the company held 847,363 Bitcoin acquired for an aggregate $64.1 billion at an average price of $75,651 per coin. With Bitcoin recently trading well below that level, the holdings sit roughly $12 billion underwater. The decline weighs on Strategy's strategy of issuing equity and debt to fund continued Bitcoin purchases, a model that depends on favorable market conditions. Traders holding STRC, one of the company's preferred-stock instruments, are reportedly bracing for additional losses as the downturn persists. The situation underscores the risks of leveraged, single-asset treasury approaches when prices fall sharply, potentially affecting the company's valuation and its ability to raise fresh capital on attractive terms.
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