Strategy Inc., formerly MicroStrategy, and Bitmine Immersion Technologies face large unrealized losses after sharp declines in Bitcoin and Ethereum. Strategy carries an estimated paper loss of about $11.2 billion to $11.3 billion on its Bitcoin holdings, while Bitmine faces an estimated $8.9 billion to $9.38 billion unrealized loss on its Ethereum treasury. The losses stem from Bitcoin trading below $63,000 and Ethereum falling below $1,800, pulling asset values below the companies' average acquisition costs. Michael Saylor, who led Strategy's Bitcoin accumulation plan, attributes the weakness to capital rotation rather than a failure of Bitcoin's long-term thesis, noting that capital markets directed about $400 billion into artificial intelligence infrastructure over six months while Bitcoin ETFs saw about $4 billion in outflows since May 14. The downturn tests the digital asset treasury model, which depends on token price appreciation and capital-market access to sustain valuations.
Strategy Holds 843,706 BTC at $75,699 Average Cost
Strategy holds 843,706 BTC at an average acquisition price of $75,699 per coin. Its total Bitcoin cost basis is about $63.8 billion to $63.9 billion. With Bitcoin trading below $63,000, the value of the company's reserve has fallen to around $52.6 billion. The position has turned negative by about 17% after six years of accumulation. MSTR stock recently traded near $124.70 in pre-market activity and around $128.98 during the previous session. The stock is down about 77% from its record high.
The company recently sold 32 BTC for about $2.5 million at an average price of $77,135 per coin. Since that sale, the value of its Bitcoin position has dropped by more than $11 billion as BTC continued falling. Saylor said capital markets have directed about $400 billion into artificial intelligence infrastructure over six months, while Bitcoin ETFs have seen about $4 billion in outflows since May 14. In his view, the current weakness reflects capital rotation rather than a failure of Bitcoin's long-term thesis.
Strategy's preferred stock product, STRC, recently traded near $94.60 to $94.85, below its intended $100 level, with yields above 12% in market commentary.
Bitmine Accumulates 5.4 Million ETH at $3,500 Average Cost
Bitmine Immersion Technologies holds more than 5.4 million ETH, equal to about 4.5% of Ethereum's circulating supply. Its position is worth close to $10 billion at current prices, compared with an estimated investment value near $18.8 billion. The company accumulated much of its ETH at an average cost near $3,500 per token. Bitmine's unrealized Ethereum loss is estimated between $8.9 billion and $9.38 billion.
BMNR shares fell below $17 and have dropped about 28% since early May. The stock is now trading at its weakest level since the company announced its Ethereum treasury pivot. Bitmine has staked about 4.7 million ETH, roughly 87% of its holdings, through its MAVAN network. That setup is estimated to generate about $276 million to $300 million in annualized staking revenue.
Bitmine has filed to raise $300 million through 3 million shares of 9.5% Series A perpetual preferred stock under the ticker BMNP. The company said proceeds may be used to buy more ETH, expand staking infrastructure, fund working capital and repurchase common stock.
Crypto Treasury Firms Record Realized Losses Amid Market Decline
Other Ethereum treasury firms have also faced losses. FG Nexus reportedly bought about 50,600 ETH at an average price near $3,940 and later recorded heavy losses after selling more than 38,000 ETH. Its reported loss figure reached $888.3 million, with a Q1 2026 net loss of $38.6 million.
More than half of the Bitcoin supply is already sitting near or below cost basis, while other on-chain data placed supply in profit near 55%. Realized losses have risen, with Glassnode data showing aggregated realized losses reaching $1.3 billion per day as Bitcoin moved back toward $62,000. Long-term holders accounted for about $770 million, or 59%, of those realized losses, showing that some cycle-top buyers who held through the decline are now exiting at a loss.
FAQ
What unrealized losses do Strategy and Bitmine currently face?
Strategy Inc. carries an estimated paper loss of about $11.2 billion to $11.3 billion on its Bitcoin holdings, while Bitmine Immersion Technologies faces an estimated $8.9 billion to $9.38 billion unrealized loss on its Ethereum treasury.
How much Bitcoin does Strategy hold and at what cost?
Strategy holds 843,706 BTC at an average acquisition price of $75,699 per coin, with a total cost basis of about $63.8 billion to $63.9 billion. With Bitcoin trading below $63,000, the reserve value has fallen to around $52.6 billion.
What is Bitmine's Ethereum staking revenue?
Bitmine has staked about 4.7 million ETH, roughly 87% of its holdings, through its MAVAN network. That setup is estimated to generate about $276 million to $300 million in annualized staking revenue.
