Bitcoin Drops Below MicroStrategy’s Cost Basis Amid 4.2% Daily Decline

MicroStrategy faces over $900 million in unrealized losses as BTC dips below its $76,037 acquisition price before modest recovery.

BTC

Summary

Bitcoin fell to $75,719.90 on February 2, dropping below MicroStrategy’s average purchase price of $76,037. According to Lookonchain, this led to about $900 million in unrealized losses on the company's 712,647 BTC holdings. The price later recovered slightly to around $76,482. This movement underscores volatility near key institutional reference levels.

Terms & Concepts
  • Cost Basis: The original value or purchase price of an asset, used to determine capital gains or losses upon sale.
  • BTC: The ticker symbol for Bitcoin, the first and largest cryptocurrency by market capitalization.