Saylor's Strategy Sinks $13B into Unprofitable Bitcoin

Strategy, a company led by Michael Saylor, has accumulated an unrealized loss of $13 billion on its Bitcoin holdings. The company's preferred stock, STRC, is down 25% from par and has fallen to a record low of $79.85.

The report by CryptoQuant suggests that Strategy should pause its Bitcoin purchases and rebuild its cash reserves. The company's USD reserve has fallen 38% since the start of the year, while annualized dividend obligations have roughly quadrupled in the same period.

According to Julio Moreno, head of research at CryptoQuant, 'Strategy should develop a systematic, fundamental-driven approach to Bitcoin purchase timing rather than buying whenever capital is available.' He also noted that Strategy's Bitcoin holdings provide limited emergency relief and that any forced sale at current prices would crystallize losses at scale.

The company still holds about $50 billion in Bitcoin at current prices. Strategy shares dropped more than 43% in June, while STRC fell to a record low of $83. The stock is currently trading below its targeted price of $100.