Strategy Has Lost Nearly $11 Billion on Bitcoin
- The largest Bitcoin holder has suffered record losses.
- According to estimates by The Kobeissi Letter, Strategy’s current unrealised loss has reached $10.8 billion.
- Saylor explained the asset’s decline as a capital rotation into AI.
Analysts at The Kobeissi Letter said that Strategy, formerly MicroStrategy, the largest corporate holder of Bitcoin, has faced what they estimate to be the largest unrealised loss in the history of its investments in the leading cryptocurrency.
It's official.
MicroStrategy, $MSTR, is now facing its biggest unrealized loss in history, at -$10.8 billion.
In other words, after 6 years of buying Bitcoin, the company is now down -17% on its position.
By comparison, the S&P 500 is up +116% over this same timeframe.
Since… pic.twitter.com/FnRbI5waxi— The Kobeissi Letter (@KobeissiLetter) June 4, 2026
According to their data, Strategy’s Bitcoin position is currently “in the red” by approximately $10.8 billion, or around 17% of the asset’s average purchase cost. This happened after a sharp decline in Bitcoin’s price.
Bitcoin’s Decline Hits Strategy
According to expert estimates, after six years of accumulating Bitcoin, the company has faced such a large paper loss for the first time.
At the same time, over the same period, the S&P 500 index has risen by 116%.
Additional pressure intensified after the company’s first-ever Bitcoin sale. As a reminder, on 1 June 2026, Strategy confirmed the sale of 32 $BTC at an average price of around $77,135 per coin. After that, the market continued to decline amid worsening geopolitical tensions in the Middle East.
According to current data, the company owns 843,706 $BTC. With Bitcoin priced at around $63,500, the market value of this portfolio has declined significantly compared with previous months.
Strategy had already reported significant losses earlier. In its report for Q1 2026, the company declared an unrealised loss of $14.46 billion, despite purchasing an additional 88,316 $BTC during the quarter.
Saylor Explains the Decline as Capital Rotation Into AI
Despite the negative price action, Strategy co-founder Michael Saylor believes the current decline does not indicate any fundamental problems with Bitcoin.
Capital markets are funding the AI buildout at historic scale: ~$400B over 6 months. Bitcoin ETFs have seen ~$4B of outflows since May 14, pressuring $BTC. This is a capital rotation, not a Bitcoin impairment. Volatility creates opportunity.
— Michael Saylor (@saylor) June 4, 2026
“Capital markets are funding the AI buildout at historic scale — around $400 billion over six months. Since 14 May, Bitcoin ETFs have seen around $4 billion of outflows, putting pressure on the asset. This is a capital rotation, not a deterioration in Bitcoin’s fundamentals. Volatility creates opportunity,” he said.
His comments align with a broader trend in financial markets. In recent months, investors have been actively reallocating capital towards AI infrastructure projects. In particular, Alphabet announced plans to raise nearly $85 billion to expand its computing infrastructure, while Anthropic has already received record investment.
The Market Is Searching for a Bottom
Amid Bitcoin’s decline, CryptoQuant CEO Ki Young Ju said that the market is undergoing a “massive change of ownership”. According to him, despite more than 1.2 million $BTC being absorbed by exchange-traded funds and Strategy, the price has returned to March 2024 levels, indicating unusually strong selling pressure.
At the same time, another CryptoQuant analyst noted that the share of Bitcoin supply in loss had reached 40.6%. Historically, similar levels have often preceded the formation of a cyclical market bottom.
Not all market participants share optimism about a quick recovery. Well-known crypto sceptic Peter Schiff previously noted that Bitcoin could fall below $20,000 because, in his view, the market is still far from completing its bearish cycle.
See also: "Bitmine’s Ethereum Bet Nears $9 Billion Loss as Ethereum Falls Below $1,800"
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