MicroStrategy Faces $10 Billion Bitcoin Loss and Stock Hits Two-Month Lows
MSTR•MicroStrategy holds 843,706 Bitcoin at a $75,702 average cost, leaving an unrealized $10 billion loss with Bitcoin trading near $64,000; the company sold 32 BTC to fund new preferred-stock dividends. Its shares have dropped 66% over 12 months, trading near two-month lows around $120 with 12% short interest.
1. AI Rotation Argument
Michael Saylor characterized the Bitcoin selloff as a capital rotation into AI infrastructure, citing roughly $400 billion in spending on data centers and chips over six months. He views recent ETF outflows of about $4 billion since mid-May as temporary repositioning rather than a fundamental weakness in Bitcoin.
2. Underwater Bitcoin Holdings
MicroStrategy’s 843,706 Bitcoin holdings, acquired at an average cost near $75,702, are now worth about $54 billion against a cost basis of $63.9 billion, creating an unrealized $10 billion loss. The company sold 32 BTC—the first sale since 2022—to satisfy weekly preferred-stock dividend obligations.
3. Stock Technicals and Short Interest
The stock has declined 66% over the past year and is trading near two-month lows around $120, with five losses in six sessions. Approximately 12% of MicroStrategy’s float is sold short, while options traders note elevated volatility readings, suggesting further swings in share price.
