Strategy: 713,502 BTC Underwater After $60K Dip – Feb 2026

Bitcoin’s early-February sell-off pushed major corporate Bitcoin treasuries into double-digit paper losses, led by Strategy (formerly MicroStrategy). On Feb. 5, 2026, BTC briefly broke below $61,000 and printed an intraday low near $60,062, putting pressure on treasury-heavy stocks and risk-linked crypto positioning.

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Context

Bitcoin’s drawdown accelerated on Feb. 5 as risk appetite weakened and leveraged positioning unwound. By 7:37 p.m. ET, BTC was down roughly 15% on the day and trading around $62,448, after briefly slipping under $61,000.

Strategy drew outsized attention because its balance sheet is effectively a large, long-duration Bitcoin position funded through corporate capital markets. That structure can amplify upside in rallies, but it also makes mark-to-market losses and equity discounts a key variable when Bitcoin falls fast.

Details

Strategy said it held 713,502 BTC as of Feb. 1, 2026, with a total cost basis of $54.26 billion and an average cost of $76,052 per bitcoin. The company also disclosed that it acquired 41,002 BTC in January 2026, increasing exposure right before the February drawdown.

In its Q4 2025 results, Strategy reported a $12.4 billion net loss as Bitcoin declined and accounting losses flowed through its financial statements. Management framed the strategy as long-term and reiterated its intent to treat Bitcoin holdings as a core treasury asset rather than a tactical trade.

“Strategy has built a digital fortress anchored by 713,502 bitcoins and our shift to Digital Credit, which aligns with our indefinite bitcoin horizon.” – Michael Saylor, Executive Chairman, Strategy, Feb. 5, 2026.

“We increased our holdings to 713,502 bitcoins, including 41,002 bitcoins acquired in January 2026 alone.” – Phong Le, President and CEO, Strategy, Feb. 5, 2026.

Separate modeling of the “pure-play” Bitcoin-treasury cohort estimated roughly $10 billion of combined unrealized losses across eight firms at the time, with Strategy representing the dominant share of exposure. Under that same snapshot, Strategy’s unrealized loss was estimated at about $6.85 billion, using its disclosed average cost and prevailing spot prices in the mid-$60Ks.

Impact

The immediate transmission channel is financing, not just accounting. When treasury-heavy equities trade at a discount to their look-through Bitcoin value, raising fresh capital can become more dilutive, which can reduce the ability of these firms to keep accumulating BTC through equity issuance.

Market plumbing also mattered during the drop. On Feb. 5, U.S. spot Bitcoin ETFs saw about $434 million in net outflows, and on-chain analytics cited a record $3.2 billion in entity-adjusted realized losses that day, reflecting forced selling and capitulation by some holders.

For investors, the second-order risk is that a deeper BTC drawdown tightens funding conditions for the most levered or most “premium-dependent” treasury vehicles. That can pressure their equities, widen discounts further, and create a reflexive loop where weaker stock prices make future fundraising harder.

Next Steps

The key variable remains Bitcoin’s price path relative to treasury firms’ cost bases and liquidity buffers. One widely circulated stress-test scenario modeled BTC at $38,000 and estimated Strategy’s unrealized losses could reach roughly $27.14 billion; this is scenario math, not a forecast, and it should not be treated as a base case without a verified primary note behind the $38,000 level.

Strategy highlighted balance-sheet flexibility measures alongside its BTC accumulation. The company said it established a $2.25 billion USD Reserve intended to cover dividends and interest, equating to about 2.5 years of coverage under its stated framework.

Near-term watch items are concrete and observable: Bitcoin’s ability to hold above recent lows, ETF flow persistence after the sell-off, and any new financing, hedging, or capital-structure actions by large treasury holders. If BTC stabilizes, the narrative shifts to “conviction hold”; if it breaks down again, markets will focus on which treasuries have enough liquidity and market access to avoid becoming forced sellers.

If Bitcoin treasury risk is back on your radar, make it a daily habit – Web Snack delivers a fast, fact-first crypto market overview every day, so you don’t miss the signals (ETF flows, leverage, majors, and headlines that move price).

P.S. This article is for informational purposes only and does not constitute investment advice. Always conduct your own research and make independent decisions.