TLDR
- Strategy’s Bitcoin holdings remain profitable despite the recent Bitcoin price drop below $92,000.
- The company’s average Bitcoin purchase price is significantly lower than the current market price, providing a cushion against volatility.
- Despite market fluctuations, Strategy continues to accumulate Bitcoin and rules out the idea of selling during market tensions.
- The CryptoQuant uPnL chart shows that Strategy’s holdings have continued to generate profits even after past market declines.
- Prediction markets are pricing in a further decline in Bitcoin price, but Strategy’s Bitcoin strategy remains unchanged.
Bitcoin’s recent drop below $92,000 has raised concerns about the sustainability of Michael Saylor’s BTC holdings under the Strategy. Despite the price drop, a CryptoQuant chart shows that the Strategy’s holdings continue to generate profits, even after multiple market declines. The company has maintained an aggressive Bitcoin accumulation strategy, dismissing volatility as a temporary concern. However, recent events are testing investor confidence.
Strategy’s Bitcoin Holdings Remain Profitable Despite Market Crash
CryptoQuant’s unrealized profit and loss (uPnL) chart, which tracks Strategy’s Bitcoin position since 2020, paints a positive picture. Despite Bitcoin’s recent price drop of over 13% over the past week, Strategy’s holdings still show substantial unrealized gains. The chart shows persistent green bars, indicating that the company’s Bitcoin bet remains profitable even through multiple market declines.
During previous crises, such as those in 2021 and 2022, there were brief periods of unrealized losses, marked by red zones on the chart. However, these losses were short-lived and quickly reversed. “The company’s average Bitcoin purchase price is well below the current market price, providing them with an important cushion against volatility,” said one industry analyst.
Even with the liquidation underway, Strategy continues to hold and accumulate Bitcoin. Michael Saylor has made it clear that his company will not sell its Bitcoin holdings, despite market fluctuations. “Bitcoin is an exponential treasury asset,” Saylor said. He believes that in the long term, Bitcoin will outperform other assets, including gold.
Bitcoin Crash Raises Concerns Over Liquidation Risks
Bitcoin has fallen more than 16% in the last six months, and the recent price action is testing investors’ resolve. The current market crisis has increased fears among traders. Recent developments, including Bitcoin’s move from the Mt. Gox wallet to Kraken, have sparked rumors of new sell-offs, adding to market uncertainty.
The liquidation has contributed to higher volatility and growing concerns about Strategy’s balance sheet. While the company’s BTC holdings are still generating profits, the broader market remains under pressure. Prediction markets are now pricing in the possibility of Bitcoin falling below $80,000, with the odds increasing to 38%.
