DWF Labs co-founder Andrei Grachev warned on X that Strategy and BitMine have a strong chance of setting off the largest market collapse in crypto history. He said he hopes it never happens, but framed the risk in blunt terms: what is the plan if Bitcoin drops to $10,000 to $20,000?
Combined unrealized losses are already above $22 billion
Based on the figures cited in the report, Strategy, led by Michael Saylor, holds 843,706 BTC at an average purchase price of $75,699. Using a Bitcoin price of around $61,000, the company is sitting on about $12.4 billion in unrealized losses. BitMine, backed by Tom Lee and taking the opposite treasury route through Ethereum, holds 5,416,901 ETH at an average cost of roughly $3,500. At current market prices, its paper loss also exceeds $10 billion. Together, the two positions are more than $22 billion underwater.
Different funding structures, different pressure points
For Strategy, the issue is not limited to mark-to-market losses. Public information cited in the article shows the company has about $871 million in cash, while burning roughly $270 million per month. The report also says Strategy sold 32 BTC for the first time in May 2026 at an average price of $77,135 to pay dividends on STRC preferred shares, which carry an annual yield of 11.5%. If Bitcoin keeps falling, the need to sell BTC to service that structure could become more acute.
BitMine appears to have a larger income cushion, at least on paper. It has staked more than 3.7 million ETH, generating about $264 million in annualized staking yield, and recently completed a $280 million preferred share financing with a 9.5% annual rate, with proceeds earmarked for more ETH purchases. But that setup carries its own weakness. A large share of assets is locked in staking, which can limit liquidity if the market drops quickly and immediate conversion to cash is needed.
The broader concern is corporate contagion
Grachev’s warning goes beyond these two balance sheets. The report notes that more than 200 public companies globally now hold crypto assets on their balance sheets. A sharp decline in BTC or ETH could force some of them to recognize losses under financial or accounting pressure and sell into weakness. That selling could drag prices lower, pushing more firms into the same response. The feedback loop is the real concern: falling prices, forced sales, then lower prices again.
He did not tell the market to dump coins or exit positions. His point was narrower and harsher: in an extreme drawdown, the most dangerous response is making decisions without a plan.