Note: The writer of this article holds shares in Strategy (MSTR).
As the correction in the cryptocurrency market begins, shortly after traditional markets adjusted to President Donald Trump’s tariffs, bitcoin (BTC) declined to its lowest point in five months, reaching as low as $74,500. This decline represents a significant one-third reduction from its peak on January 20.
This downturn has resulted in Strategy (MSTR) being slightly profitable from its bitcoin acquisition approach. With an overall investment of $35.6 billion, the company is currently experiencing an unrealized profit of approximately 10%, which is about $3.9 billion on its bitcoin holdings.
Strategy possesses 528,185 BTC, presently valued at $39.5 billion, translating to an average cost basis of $67,458 per bitcoin. The company’s mNAV multiple, which is the market cap divided by the value of its holdings, stands just under 2, indicating that its stock is still trading at a premium.
Research indicates that MSTR has no liquidation risk even if bitcoin prices drop below its acquisition cost.
As of April 2, Metaplanet disclosed that it holds 4,206 BTC, which were purchased at an average price of 12,925,027 yen ($88,800) per bitcoin. This positions the Japanese firm around 15% swimming in losses concerning its bitcoin strategy. The stock tumbled 20% on Monday alone due to the relentless pressure from the market downturn.
Semler Scientific (SMLR) has also incurred losses in its bitcoin holdings, with an average purchase price of $87,854 per BTC, as per a recent filing made in February.
With bitcoin’s value declining by 20% this year, Semler has seen a 38% loss, Metaplanet 15%, and Strategy 2%.