Michael Saylor’s Strategy Faces $900M Loss as Bitcoin Falls Below $75K

Quick overview

Michael Saylor’s Bitcoin-focused company, Strategy (formerly MicroStrategy), is facing a turbulent time as a steep drop in cryptocurrency prices briefly put its large Bitcoin holdings below water. On February 2, 2026, the company held 712,647 BTC, worth about $54.36 billion, which is close to its average purchase price.

Strategy’s BTC Treasury Snapshot (Feb 2, 2026)

Even though the market has become more cautious, Strategy has continued to buy aggressively, adding 2,932 BTC on January 26.

Total BTC Holdings

712,647 BTC

Average Cost Basis

~$76,037 per coin

Current BTC Price

~$77,653 (recovering from intraday lows)

Paper P/L Status

Hovering near break-even (briefly ~$900M loss below $75K)

Market Share

~3.4% of total 21M supply

As #Bitcoin fell below $75,000, Michael Saylor(@saylor)'s @Strategy's 712,647 $BTC is now facing an unrealized loss of over $900M.https://t.co/iFtYbgyI3Q pic.twitter.com/p3gQpkzDuU

— Lookonchain (@lookonchain) February 2, 2026

Market Pressure and Institutional Resilience

Bitcoin recently fell below $80,000, dropping 33% over six months. This decline was driven by a stronger U.S. dollar and the nomination of Kevin Warsh as the next Fed Chair, which raised bond yields and reduced interest in the ‘debasement trade.’

• Liquidity Check: Unlike many crypto-heavy portfolios, Strategy’s coins are unencumbered. Because they are not used as collateral, the firm faces no immediate liquidity risk or forced margin calls.
• Stock Performance: Strategy Inc. stock (MSTR) closed at $149.71, showing a 4.55% daily gain despite the broader market slump. While the stock is down over 50% for the year, investors appear to maintain faith in its role as a high-leverage Bitcoin proxy.

Saylor’s “More Oranges” Signals

Michael Saylor has dismissed calls from critics like Peter Schiff to sell, sticking to a ‘hold and accumulate’ approach. His recent ‘More Orange’ posts on social media, which often come before official Monday filings, suggest that Strategy is using the current price drop to lower its average cost by selling shares and issuing preferred stock.

Market Context: As of early 2026, Strategy has a $2.25 billion cash reserve to cover debt interest and preferred stock dividends. This helps protect its Bitcoin holdings from short-term price changes.

ABOUT THE AUTHOR See More

Arslan Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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