Michael Saylor, chairman of MicroStrategy, speaks at the Bitcoin 2024 conference in Nashville, Tennessee, on July 26, 2024.
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Strategy plunged roughly 7% on Monday after bitcoin dipped below the cryptocurrency treasury company’s average purchase price per token.
Bitcoin traded at about $74,500 at its bottom on Monday – its lowest price since last April.
That’s slightly below Strategy’s average purchase price of $76,052 per bitcoin, according to its regulatory filing dated Feb. 2, raising concerns that the Michael Saylor-led firm could be underwater if the digital currency continues to slide. The company holds roughly $56 billion in bitcoin, its website shows.
The pullback in shares comes as bitcoin has shed 11% over the past five days, largely due to mounting geopolitical concerns and expectations of a monetary policy shift in the U.S.
Last week, investors rotated out of risk-on assets across global markets, including cryptocurrencies, as tensions flared between President Donald Trump and European leaders over the U.S.’ Greenland gambit. On Friday, President Trump endorsed Kevin Warsh as his pick for Federal Reserve chair, leading investors to assume even more cautious positions.
A series of forced liquidations also amplified bitcoin’s plunge. More than $2 billion of long and short positions linked to the asset have been liquidated since Thursday, Coinglass data shows.