TLDR
- Strategy’s Bitcoin holdings face unrealized losses of $3.8 billion.
- MSTR stock drops 3% and has fallen over 70% from its July 2025 peak.
- Bitcoin’s price decline this year has reached 19%, impacting institutional investors.
- Bitcoin fell below $71K on the same day as Michael Saylor’s birthday.
In a sharp turn of events, Strategy, the world’s largest crypto treasury firm, is facing a staggering $3.8 billion in unrealized losses after Bitcoin dropped below $71,000. This significant drop occurred on Michael Saylor’s birthday, a notable day for both the company and its founder. The sharp decline has raised concerns for institutional investors who have heavily invested in Bitcoin, particularly through companies like Strategy.
💥BREAKING:
Michael Saylor's ''Strategy'' is now down over -$3.5 billion as Bitcoin drops below $71,000. pic.twitter.com/aOeWS4VdxR
— Crypto Rover (@cryptorover) February 5, 2026
The drop in Bitcoin’s value has compounded the financial struggles of Strategy, which holds a significant amount of the digital currency. This loss comes amid a broader market downturn, which has seen Bitcoin lose nearly 19% of its value so far this year.
Bitcoin’s Recent Downturn and Strategy’s Loss
Bitcoin’s price, which had reached record highs in recent years, has been in a steady decline throughout 2026. As of now, Bitcoin’s value stands at levels last seen before the 2024 election. This downturn has resulted in significant financial pressure on institutional investors like Strategy, which has invested heavily in Bitcoin.
According to TradingView data, Bitcoin’s price fell below $71,000 recently, marking a sharp decline from its peak. This drop also triggered $777 million in liquidations within a 24-hour period, largely from investors holding long positions. The sell-off only added more volatility to the market, impacting the broader crypto ecosystem.
Strategy’s Bitcoin holdings, which were purchased for an estimated $54.3 billion, have now seen a considerable loss. With over 700,000 BTC acquired at an average price of around $76,000 per coin, the company is now grappling with the financial repercussions of a significant price decline.
MSTR Stock Struggles Amid Bitcoin Volatility
Alongside Bitcoin’s drop, Strategy’s stock, MSTR, has also been under pressure. The stock closed down 3% on Wednesday and has continued to decline in after-hours trading. Over the past several months, MSTR has lost more than 70% of its value since its peak in July 2025. The company’s stock is also down 15% so far in 2026, reflecting the broader market struggles and the impact of Bitcoin’s price decline.
The volatility of Bitcoin has raised concerns among investors, particularly those who have been betting on the digital asset as part of their portfolio. As Bitcoin’s price continues to fluctuate, the financial performance of companies like Strategy, which hold substantial Bitcoin reserves, faces heightened risk.
Bitcoin’s 2026 Struggles and the Broader Market Impact
The drop in Bitcoin’s value has not been isolated to Strategy. The broader cryptocurrency market has experienced a downward trend in 2026, with Bitcoin’s 19% decline being one of the most noticeable shifts. Institutional investors who were once confident in the long-term potential of Bitcoin are now reevaluating their strategies in response to the ongoing market volatility.
In addition to the financial losses for Strategy, the broader crypto market is facing increased pressure. With liquidations occurring and Bitcoin’s price reaching new lows, many investors are beginning to question the sustainability of the current market. The rapid sell-off on Michael Saylor’s birthday further highlighted the risks associated with institutional cryptocurrency investments, especially for firms like Strategy, heavily invested in Bitcoin.
The situation remains uncertain as Bitcoin continues to experience volatility, and companies with substantial crypto holdings like Strategy brace for potential further losses.
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