MSTR stock Bitcoin loss deepens as Strategy shares fall to 2024 lows, with rising losses highlighting the risks of Bitcoin exposure.
Author: Kritika Gupta
Steady attention without excessive speculation.
5th February 2026– MSTR stock Bitcoin losses concern intensified after Strategy Inc. (NASDAQ: MSTR), the business intelligence firm turned Bitcoin treasury vehicle, saw its shares fall to their lowest level since September 2024 on February 3, 2026. The stock closed at $129.09, which represents a 78% decline from its all-time high of $473.83 reached in November 2024.
This drop followed a sharp decline in Bitcoin prices. As Bitcoin briefly traded in the low $70,000 range, Strategy’s Bitcoin holdings moved into deep unrealized losses, approaching $3 billion. The company holds more than 713,000 BTC, acquired at an average price of roughly $76,052 per coin. As a result, the downturn has once again highlighted the risks of the aggressive Bitcoin accumulation strategy promoted by Executive Chairman Michael Saylor, particularly given the firm’s leverage and exposure to market volatility.
High Signal Summary For A Quick Glance
RAREMINTS
@raremints_
🎉 Happy Birthday Michael Saylor! $MSTR is down $2.1B on its $BTC investment as price has fallen below their average cost of $76,000. https://t.co/DtHt3oNU2K
12:15 AM·Feb 5, 2026
Jacob King
@JacobKinge
BREAKING: MicroStrategy ( $MSTR ) plunges to its lowest level since September 2024 as losses on its #Bitcoin bet swell toward a whopping -$3.8 billion. (-$14.6 billion if accounting for inflation). The stock is now down -80%, with some analysts warning the trajectory https://t.co/s39ehMtTmR
07:07 PM·Feb 4, 2026
Solcatcher
@0xkSolcatcher
MICROSTRATEGY $MSTR just hit a new low since September 2024 Shares down -78% from the November 2024 all-time high Their Bitcoin position is now close to an unrealized loss of -3 billion dollars, the company that once was the the safest way to buy Bitcoin. Right now looks like https://t.co/8mUtlhRF8a
06:58 PM·Feb 4, 2026
The recent slide in Strategy’s shares and Bitcoin holdings was driven by a broader cryptocurrency market selloff in early 2026. During this period, Bitcoin fell below $73,000, with intraday lows in the mid-$70,000s. These moves reflected renewed macroeconomic pressure, including concerns over possible Federal Reserve policy shifts and continued global economic uncertainty. Against this backdrop, the latest MSTR stock Bitcoin losses mirrors stress across the wider crypto market.
As Bitcoin dropped below Strategy’s average acquisition price of roughly $76,052, the value of its 713,502 BTC declined sharply. Consequently, unrealized losses exceeded $2 billion at multiple points and approached $3 billion during the deepest dips. Because Strategy funded much of its Bitcoin accumulation through debt and equity issuance, the current MSTR stock Bitcoin losses underscores how sensitive the company’s balance sheet has become to Bitcoin price swings.
Importantly, this situation is not unprecedented. During the 2022 crypto winter, Bitcoin fell from nearly $69,000 in November 2021 to under $16,000 by late 2022. At that time, Strategy held around 130,000 BTC and recorded billions in unrealized losses. Those losses fueled concerns about margin calls and technical insolvency.Â
Key milestones related to this development
MSTR establishes the last key support level before the 2026 drop.
Strategy expands its Bitcoin treasury through debt and equity issuance.
Rate uncertainty and global risk-off sentiment pressure crypto markets.
Bitcoin dips into the low $70,000s, pushing unrealized losses toward $3B.
Results expected to reflect significant unrealized Bitcoin losses.
The latest downturn has renewed scrutiny of Strategy’s business model. Over the past six months, the stock has declined more than 65%. At the same time, it now trades at roughly 0.7 times the net asset value of its Bitcoin holdings. Historically, Strategy often traded at a premium of two to three times NAV, which underscores how sharply market sentiment has shifted.
As a result, bearish positioning has increased. Inverse ETFs that bet against MSTR, including GraniteShares’ product, have surged and recently hit a record price of $114 per share. Meanwhile, the broader crypto market has also felt the impact. Bitcoin’s brief move below $75,000 triggered more than $500 million in liquidations and pressured other companies with large Bitcoin exposure.
Looking ahead, Strategy’s outlook depends largely on Bitcoin’s price trajectory. Michael Saylor has reiterated his intention to continue accumulating Bitcoin through 2026. In fact, the company recently added 855 BTC despite the ongoing drawdown, signaling strong long-term conviction.
However, near-term volatility remains a concern. Strategy is set to report Q4 2025 earnings on February 5, and the results are expected to reflect substantial unrealized losses. Estimates already factor in roughly $17.44 billion in unrealized losses from Bitcoin’s decline during the quarter.
If Bitcoin rebounds above $80,000, as some forecasts suggest in the event of future rate cuts, Strategy’s stock could recover quickly. On the other hand, if weakness persists, investors may raise fresh questions about funding, particularly given the company’s debt levels and 11.25% preferred dividend obligations.
Our Crypto Talk is committed to unbiased, transparent, and true reporting to the best of our knowledge. This news article aims to provide accurate information in a timely manner. However, we advise the readers to verify facts independently and consult a professional before making any decisions based on the content since our sources could be wrong too. Check our Terms and conditions for more info.
