Bitcoin’s decline exposes MicroStrategy to book losses of nearly $1 billion

The brief fall of Bitcoin (BTC) below $75,000 on February 1, 2026 recorded unrealized losses on Bitcoin holdings in Strategy (formerly MicroStrategy) worth about $1 billion.

This pullback occurred amid signs of more buying by the world’s largest institutional holder of Bitcoin, which continued its extended strategy of accumulating Bitcoin, often buying BTC in consecutive weeks.

Sponsored

Sponsored

MicroStrategy’s position is under pressure amid Bitcoin’s recent decline

Bitcoin has faced market headwinds, falling more than 12% in the past seven days. During Asian trading hours on February 1, the asset fell below $75,000 for the first time since early April 2025, briefly hitting a low of $74,544 on Binance before posting a modest recovery.

BeInCrypto markets data showed that at press time, Bitcoin was trading at $75,826, down 3.9% in the last 24 hours. The recent decline has put pressure on the elderly Institutional holders, incl Strategy.

Under its CEO Michael Saylor, Strategy manages 712,647 BTC coins at an average purchase cost of $76,037 per coin. At current prices, Strategy’s Bitcoin return is shown Unrealized paper losses With an approximate value of $150 million. When Bitcoin fell to $74,544 earlier in the session, those losses briefly reached nearly $1 billion.

A market observer said Manifesto That every drop in BTC wipes billions in fiat value from its balance sheet. This shows how risky institutional exposure to Bitcoin is even for large players.

Sponsored

Sponsored

The losses outweigh the strategy. demonstrated Data From BitcoinTreasuries that many other institutional Bitcoin holders are also facing significant unrealized paper losses.

Metaplanet’s position in Bitcoin has fallen currently by 30.13%, while reflecting the actions of Strive Loss of paper For 28.97%. GD Culture Group’s Bitcoin treasury shows a chart loss of 35.59%.

Continue to stick to his plan for Bitcoin, as Saylor suggested At the intention to increase the accumulation of BTC. If the company buys Bitcoin again this week, it will be its fifth BTC purchase this year. Its biggest purchase to date was recorded on January 20, when the company purchased 22,305 bitcoins.

Develop a strategy to support ongoing acquisitions rate of return Series Perpetual Preferred Shares (SRC) at 11.25%, effective from February 2026, with the aim of attracting more capital. Overall, the proceeds from the sale of strc funded the purchase of more than 27,000 BTC.

Bitcoin’s decline has impacted more broadly beyond the balance sheets of business owners. According to data CryptoQuantBitcoin is now trading below the realized price of the US Bitcoin ETF, indicating that US Bitcoin Spot Fund investors are mostly holding their positions at an unrealized loss.

Sponsored

Sponsored

The movement without a cost base of funds allows you to test whether institutional buyers They will continue to engage If prices remain low.

Bitcoin faces the risk of a deeper decline as analysts warn of a bearish zone between $55,000 and $58,000.

Expectations have become more cautious close term As Bitcoin continues to decline. Some analysts have noticed At the possibility of the asset falling towards the range of $58,000 to $55,000.

Analyst PlanB confirmed that Bitcoin’s 200-week moving average is currently located near $58,000. Meanwhile, the realized price of Bitcoin, which represents the average cost of cross-chain acquisition of all coins in circulation, has fallen to around $55,000 and is still trending lower.

Sponsored

Sponsored

Momentum indicators have also weakened, with… Low RSI Below the neutrality level of 50. Historically, Bitcoin often follows its movements towards the 200-week moving average or price obtained, indicating a potential bearish range between $55,000 and $58,000 if the pattern repeats itself.

Plan B added that the upside was weak (no red) because the downside can be limited.

Watch Bitcoin now as it trades below the key cost rules and eyes focus on long-term support levels, as the next few weeks could be important in testing the convictions of the institutions. A further decline may expose corporate holders of the currency to new scrutiny, as a sharp decline will increase unrealized losses in large Bitcoin hoards.