Michael Saylor Defends Bitcoin Strategy Amid $11B Unrealized Loss
Luisa Crawford Jun 04, 2026 15:00
Michael Saylor attributes Bitcoin's slide to capital rotation, as Strategy's unrealized loss climbs to $11.2B. ETF outflows and AI investments weigh on BTC.
Michael Saylor, co-founder of Strategy, is defending his company’s Bitcoin-centric treasury approach even as the firm faces mounting losses. Strategy’s unrealized Bitcoin loss has ballooned to $11.2 billion as BTC trades below its average purchase price. The company holds 843,706 BTC acquired at an average price of $75,699 per coin, with a total cost basis of $63.8 billion. As of June 4, Bitcoin is priced at $63,957, valuing Strategy’s holdings at $52.6 billion.
Adding to the pressure, Strategy’s variable-rate preferred stock (STRC) is trading at $94.6, below its $100 par value. Meanwhile, Strategy’s common stock (MSTR) slipped 1.5% in pre-market trading to $124.7, suggesting ongoing skepticism about its Bitcoin-heavy strategy. This follows the company’s first BTC sale since 2022, though the 32 BTC sold last week is a fraction of its holdings.
Saylor dismissed concerns about Bitcoin’s decline, pointing to broader market dynamics. He noted that $400 billion has flowed into AI infrastructure in the past six months, a trend he says is drawing capital away from Bitcoin. Additionally, spot Bitcoin ETFs have seen $4.4 billion in outflows over the past 13 trading days, a record streak of redemptions. "This is a capital rotation, not a Bitcoin impairment. Volatility creates opportunity," Saylor argued in a social media post.
Bitcoin’s recent weakness reflects a combination of ETF outflows and broader risk-off sentiment. On June 3, Bitcoin dropped below $67,000, driven by reports of a $3.5 billion ETF exodus. For context, May alone saw $2.43 billion in net outflows from U.S. spot Bitcoin ETFs, marking the worst month of the year for redemptions. BlackRock’s IBIT ETF shed $440 million in a single session on June 2, underscoring the scale of institutional de-risking.
Standard Chartered’s Geoffrey Kendrick offered a more optimistic take. He suggested the market could be nearing a bottom, contingent on Strategy’s next move. A purchase of 320 BTC or more, he said, could signal renewed confidence and stabilize prices. Historically, Strategy has used tax-loss harvesting to optimize its Bitcoin position, selling 704 BTC in late 2022 only to repurchase 810 BTC two days later.
Some market participants are less convinced. Bitcoin critic Peter Schiff argued that a continued decline in STRC could force Strategy to raise dividend payments, potentially accelerating Bitcoin sales to fund those obligations. On the other hand, investor Scott Melker downplayed the significance of STRC’s price dip, calling it a normal market reaction to rising yield expectations.
As of now, Bitcoin’s price is down 4.17% in the last 24 hours and 13.8% for the week, trading near $63,957. With ETF outflows and macroeconomic uncertainties weighing on sentiment, all eyes are on Strategy’s next steps—and whether its Bitcoin-dominated treasury model can weather the storm.
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