Strategy (formerly MicroStrategy), the world’s largest corporate Bitcoin holder, has seen its unrealized paper loss on Bitcoin holdings surge past $11 billion. As Bitcoin’s price continues to slip from recent highs, the massive mark-to-market loss is under scrutiny, but executive chairman Michael Saylor has publicly downplayed the decline.
Saylor pointed to two key factors weighing on Bitcoin: persistent outflows from spot Bitcoin ETFs, and the enormous investment flowing into artificial intelligence infrastructure. He explained that capital leaving Bitcoin ETFs has eroded buying support, while the AI infrastructure race—spanning data centers and advanced computing—has diverted liquidity that could have otherwise entered digital assets.
The $11 billion paper loss, although not realized through any sale, is recorded in Strategy’s financial statements. Saylor reaffirmed that the company is sticking to its Bitcoin holding strategy and has no intention of cutting its position. The loss reflects the impact of price volatility on large holders, but the company insists it will not alter its long-term approach due to short-term swings.