Strategy $MSTR ( ▼ 6.73% ) briefly found itself back in an uncomfortable place as Bitcoin slid toward its April 2025 lows.
At the overnight trough, the value of the company’s massive bitcoin stash dipped below its average purchase price for the first time in more than two years. According to a fresh 8-K, Strategy held 713,502 bitcoin as of February 1, acquired at an average price of $76,052. Bitcoin fell as low as $74,540, undercutting that cost basis before bouncing.
Back in the Red Zone
That price drop briefly pushed Michael Saylor’s leveraged bitcoin strategy underwater on paper. The move came just shy of bitcoin’s 2025 low of $74,425, marking a key technical and psychological level for both traders and long term holders.
For a company whose entire corporate identity now revolves around bitcoin accumulation, these drawdowns are part of the deal, but they still highlight how sensitive Strategy’s balance sheet is to short term crypto swings.
Liquidity Buffer, Not a Fire Sale
Importantly, Strategy is not being forced into selling. In December, the company set up a $1.44 billion US dollar reserve specifically to cover interest and dividend obligations. That cash buffer reduces the risk that it would need to liquidate bitcoin during periods of price weakness.
So while the milestone of going underwater grabs headlines, the firm has structured its finances to avoid turning volatility into a liquidity crisis.