Microstrategy’s $1 Billion Paper Loss Faces Bitcoin Drops
The brief fall of Bitcoin (BTC) in Below $75,000 on February 1, 2026, Strategy (formerly MicroStrategy) BTC holdings pushed it to an undisclosed loss of around $1 billion.
The drawdown comes amid signs of further buying from the world's largest corporate bitcoin holder, which has continued its long-term rallying strategy, often buying BTC in consecutive weekly streaks.
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(Micro)Strategic positioning under pressure amid Bitcoin's recent collapse
Bitcoin continues to experience market headwinds, extending its decline by more than 12% in the past seven days. In the year
According to data from BeinCrypto Markets, at the time of press release, Bitcoin was trading at $75,826, a decrease of 3.9% in the last 24 hours. Weighed in on major corporate holdings, including recent return strategy.
Strategy, under executive chairman Michael Saylor, holds 712,647 BTC at an average purchase price of 76,037 per coin. At current prices, Strategy Bitcoin Treasury reflects a paper loss of approximately $150 million. While bitcoin fell to $74,544 earlier in the session, those losses briefly ballooned to around $1 billion.
“Every twist in BTC wipes billions of paper value off their balance sheets. This shows how risky corporate bitcoin exposure can be, even for major players,” a market watcher posted.
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Losses are not limited to strategy. According to data from BitcoinTreasuries, several other corporate Bitcoin owners are also sitting on insignificant losses.
Metaplanet's Bitcoin position is currently down 30.13%, while Strive's holdings reflect losses of 28.97%. GD Culture Group's Bitcoin Treasury is showing a paper loss of 35.59%.
Still, Strategy remains committed to its Bitcoin strategy, with Saylor hinting at more BTC holdings. If the company buys Bitcoin again this week, it will mark its fifth BTC purchase of the year. Its largest purchase to date occurred on January 20, when the company bought 22,305 bitcoins.
A strategy to support further acquisitions has raised the dividend yield on S Series A Perpetual Stretch Preferred Stock (STRC) to 11.25% from February 2026, aiming to attract additional capital. In total, the proceeds from STRC sales helped fund the acquisition of over 27,000 BTC.
Bitcoin's decline has far-reaching implications beyond corporate balance sheets. According to CryptoQuant data, Bitcoin is now trading below the Bitcoin US ETF Realized Price, suggesting that US spot Bitcoin ETF investors are holding positions at an average unrealized loss.
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A move below ETF cost bases could test the commitment of institutional buyers if prices remain depressed.
Bitcoin Risks Deeper Retracement As Analysts Point To $55,000-$58,000 Low
As Bitcoin's offer widens, the near-term outlook has become increasingly cautious. Some analysts are warning that the property could slip into the $58,000 to $55,000 range.
According to analyst Planby, Bitcoin's 200-week moving average is currently sitting around $58,000. At the same time, Bitcoin's proven value, which represents the average on-chain acquisition cost of all circulating coins, has fallen to around $55,000 and continues its downward trend.
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Momentum indicators also weakened as the relative strength index fell below the neutral 50 level. Historically, Bitcoin has often retraced to its 200-week moving average, or perceived price, which suggests a potential retracement of the lows between $55,000 and $58,000.
“However, bulls were weak (no red) so bears may be shallow,” Plan added.
With Bitcoin now trading below key cost bases and long-term support levels in focus, the coming weeks could be critical in testing institutional judgement. A sustained move lower could cause institutional owners to re-examine, as a sharp decline could add unprecedented losses to large Bitcoin holdings.
