As selling pressure deepens in the cryptocurrency market, Bitcoin (BTC) experienced a sharp correction, losing 6.36% of its value in the last 24 hours.
As of the time of writing, BTC is trading at $78,707, and it appears to be continuing its recent downward trend.
This decline has brought the cost of investment for companies aggressively investing in Bitcoin back into the spotlight. Attention is particularly focused on MicroStrategy (now Strategy), whose average purchase price is high. The company holds a total of 712,647 BTC, with an average cost of $76,038. Based on the current price, the company is still approximately 3.43% profitable, with total unrealized earnings hovering around $1.86 billion. However, a potential further pullback in Bitcoin price could quickly push Strategy into the loss zone.
Strategy’s total Bitcoin holdings are approximately $56.05 billion. It is estimated that a drop in the BTC price below the average cost could put significant pressure on the company’s balance sheet. In the market, the $76,000 range stands out as a critical threshold, both in terms of technical analysis and institutional cost levels.
*This is not investment advice.
