Strategy’s $64.1B Bitcoin Holdings Suffer $14.46B Mark-to-Market Loss
STRC•Strategy holds 847,363 BTC bought at $75,651 average cost totaling $64.1 billion but BTC fell below $60,000. New FASB standard forced a $14.46B unrealized loss leading to a $12.54B net loss, and share dilution now costs shareholders $310M per $1B raised.
1. Strategy’s Bitcoin Holdings and Cost Basis
As of June 22, Strategy held 847,363 BTC purchased for $64.1 billion at an average cost of $75,651 per coin, making it the largest corporate holder of Bitcoin.
2. FASB Mark-to-Market Loss Recognition
Under FASB rule ASU 2023-08, Strategy must mark its digital assets to fair value each quarter, resulting in a $14.46 billion unrealized loss and a $12.54 billion net loss equivalent to $38.25 per diluted share in early 2026.
3. Share Dilution and Financing Flywheel
Strategy’s model issues new equity and debt to buy more Bitcoin; with shares trading below net asset value, each $1 billion of stock issuance now dilutes existing shareholders at a cost of $310 million.
4. Broader Market Ripple Effects
Competing Bitcoin treasury firms have seen their shares plunge below net asset value, and index providers are considering removing companies whose digital assets exceed half their total assets, spreading losses to passive and index fund investors.
