Strategy (formerly MicroStrategy) reported a steep unrealized loss on its Bitcoin holdings, surpassing $13 billion as of June 28, 2026. The company currently holds 847,363 BTC with an average purchase price of $75,653 per coin. With Bitcoin trading near $60,000, the paper losses have mounted to a record level.
Market Cap Sinks Below Reserve Value
Strategy's market capitalization has shrunk to roughly $29 billion, about 43% below the market value of its Bitcoin reserves. The widening gap undermines the company's previous cycle of raising capital to buy more Bitcoin. The mini Net Asset Value (mNAV) ratio — market cap divided by reserve value — has dropped to 0.99. Company bylaws require an mNAV of at least 1.22 before new shares can be issued to purchase additional crypto. At the current ratio, any share issuance would dilute existing holders, effectively halting further Bitcoin accumulation for now.
Cash Squeeze and Wall Street Warnings
The company's preferred shares, ticker STRC, have fallen around 25% below face value to $74.57. Strategy holds about $1.4 billion in cash, but its annual dividend obligations total roughly $1.2 billion — meaning cash reserves cover only 14 months of payments. Zach Pandl, Head of Research at Grayscale, warned that Strategy may need to sell at least $3 billion worth of Bitcoin to meet short-term debt. Ripple CEO Brad Garlinghouse criticized the debt-driven structure, saying it has damaged the market and made Bitcoin overly dependent on a single company's balance sheet.
Key Price Levels and Outlook
Michael Saylor maintains that no forced liquidation risk exists as long as Bitcoin stays above $8,000. However, technical resistance lies at $67,098 and $75,682. A sustained rally above $75,000 would be needed for Strategy to resume aggressive purchases. Until then, balance sheet stress and debt discussions will persist.