Strategy’s Bitcoin bet sinks $12 billion underwater as STRC traders brace for more pain
Strategy still holds more than $50 billion of Bitcoin, but weaker securities and rising funding costs are leaving it with fewer attractive ways to keep buying.Strategy’s Bitcoin holdings have fallen roughly $12 billion below their purchase cost, placing the company’s capital-raising model under its sharpest pressure since it accelerated its Bitcoin treasury strategy.

The company held 847,363 Bitcoin as of June 21, acquired for an aggregate $64.1 billion at an average price of $75,651. With the top crypto recently trading near $60,000 to $62,000, the position was worth about $52 billion.While this substantial unrealized loss does not compel Strategy to sell its holdings or create an automatic margin call, it significantly weakens the conditions that allowed the company to repeatedly issue securities, buy more Bitcoin, and expand a treasury that became central to its market valuation.
Strategy’s accumulation model has worked most efficiently when its common shares traded at a premium to the value of the Bitcoin on its balance sheet. That premium allowed the company to raise capital through stock sales while limiting the number of new shares issued.
As Bitcoin and Strategy’s stock have declined, that advantage has narrowed. The pressure has since spread to STRC, the company’s variable-rate perpetual preferred stock, which is trading well below the $100 stated amount Strategy designed it to track.