Strategy Fund Boosts Bitcoin Holdings Despite $50 B Unfair Value Loss
Strategy added more Bitcoin to its existing $50 billion portfolio, which still shows significant unrealized losses. A firm strategist warns Bitcoin could slide to $40,000 within six to eight months, potentially widening the fund’s mark-to-market deficits.
1. Fund Expands Bitcoin Position
The Strategy Fund purchased additional Bitcoin on February 9, increasing its digital-asset allocation even though its $50 billion stake remains below cost. Management cited long-term upside potential and ongoing conviction in Bitcoin’s fundamentals.
2. $50 B Portfolio Trades Below Acquisition Cost
Despite the new purchase, the fund’s existing Bitcoin holdings continue to trade at a discount to the original purchase price, resulting in substantial unrealized losses on the balance sheet.
3. Bearish Price Forecast Raises Risk Concerns
A senior strategist warns Bitcoin could fall to $40,000 over the next six to eight months, signaling further potential mark-to-market hits for the fund and underscoring heightened volatility ahead.