- Strategy’s BTC treasury is deep underwater as Bitcoin extends its 2026 decline
- Liquidations surged as long positions unwound during the selloff
- MSTR stock continues to slide alongside crypto market weakness
Strategy, the world’s largest corporate crypto treasury holder, is now sitting on roughly $3.8 billion in unrealized losses as Bitcoin slipped below the $71,000 level. The drop marks one of the sharpest stress tests the company has faced in recent years, especially given how concentrated its exposure remains. Bitcoin’s move lower has erased much of the price support built earlier in the cycle.
The selloff came during a broader risk-off move across digital assets and coincided, somewhat ironically, with Michael Saylor’s birthday. Timing aside, the market reaction was anything but celebratory, with leveraged positions unwinding quickly as prices fell.
Liquidations Accelerate as Long Bets Unwind
Over the past 24 hours, roughly $777 million in crypto positions were liquidated, with long bets making up the majority of the damage. That wave of forced selling added momentum to Bitcoin’s decline and reinforced how fragile sentiment has become after weeks of pressure. Once key levels broke, downside moves accelerated fast.
Bitcoin is now down about 19% year-to-date in 2026 and is trading near levels last seen around the 2024 election. For many traders, that round-trip has been psychologically jarring, especially after the optimism that followed last year’s highs.
A Massive Position With Little Room to Hide
Strategy currently holds 713,502 BTC, acquired for approximately $54.3 billion at an average price close to $76,000 per coin. With Bitcoin trading well below that level, the scale of unrealized losses has become impossible to ignore. While the company has long framed volatility as part of its strategy, drawdowns of this size still test patience.
The concentration cuts both ways. When Bitcoin rallies, Strategy outperforms dramatically. When it falls, the downside is amplified, and markets are reminded just how directional the bet really is.
MSTR Stock Continues to Slide
Pressure isn’t limited to the balance sheet. MSTR shares closed Wednesday down about 3% at $129 and slipped further in after-hours trading. The stock is now more than 70% below its July 2025 peak and down roughly 15% so far in 2026.
For investors, the message is becoming clearer. Strategy remains a leveraged expression of Bitcoin’s price, not a defensive proxy. As long as crypto stays under pressure, both the treasury and the stock are likely to move in lockstep.
