Bitcoin dropped below $74,600, moving under MicroStrategy’s reported average acquisition cost of $76,037. The move puts the company into an unrealized loss position on paper and challenges a price zone that many traders had treated as an institutional support level.
Loss of a key price level hits market sentiment
According to the source material, fear in the market intensified after Bitcoin lost the $74,600 level. MicroStrategy’s average entry price had been watched closely as a psychological threshold, and the break below it shifts attention from long-term conviction to immediate balance-sheet pressure. The selloff was still in progress at the time described in the report.
Pressure builds on MSTR and STRC funding conditions
The report argues that the larger issue is not only Bitcoin’s price decline, but the slowing funding engine behind the company’s acquisition model. MSTR shares fell below $150, while preferred stock STRC traded below par. To keep fundraising going, the dividend rate had to be raised to 11.25%, increasing the cost of the strategy built around issuing securities to buy more Bitcoin.
If the stock cannot regain a strong premium, the company’s ability to issue more shares and convert that financing into additional BTC could weaken or stall. That would directly affect the expansion model that has supported its treasury accumulation.
Late-January purchase raised the blended cost
Even with that backdrop, CEO Michael Saylor bought another 2,932 BTC in late January at an average price of $90,061, according to the source citing Bitcoin Magazine. The purchase reinforced the company’s long-term conviction, but it also pushed the overall cost basis higher.
The same material says markets broadly expect the macro backdrop in 2026 to remain far from quickly easing. For MicroStrategy, the next key variable is not just whether Bitcoin rebounds, but whether the company can restore the premium-based financing loop that made its accumulation strategy work. If Bitcoin stays below $80,000 for an extended period, that expansion path may face tighter constraints.