Bitcoin fell below Strategy average buy price overnight

Overnight, bitcoin (BTC) fell to less than $74,600, well below Strategy’s average purchase price.

Since 2010, founder Michael Saylor has used corporate funds to buy 713,502 BTC at a lifetime average of $76,052. However, despite paying $54.2 billion for its so-called BTC treasury, this investment fell to below $53.3 billion.

Monday’s drop, along with similar price dips over the weekend, is the first time in two and a half years that Strategy’s cost basis has been higher than prevailing market prices for BTC.

The last time this happened was October 21, 2023 when the company’s BTC cost basis was $29,581 and BTC was trading at $29,483.

Ever since that date, Strategy has enjoyed owning BTC below its market value.

At his peak, Saylor seemed like a market wizard. On October 6, 2025, Strategy’s BTC holdings peaked above $79 billion and the company’s average buy of $73,982.73 was below the soaring BTC price above $126,000.

That 41% cushion has deflated entirely to less than zero as of last night.

Twelve-month Strategy BTC cost basis (green) versus price and purchases (orange). Source: StrategyTracker

Strategy’s buy price is not a liquidation threshold

Although significant, the price of BTC falling below Strategy’s cost basis won’t automatically trigger any liquidation.

The company has only $8 billion worth of debt — far below its $56 billion worth of BTC holdings. Moreover, the company’s debts don’t mature until 2028 at the earliest.

Still, millions of people saw the decline of BTC below Saylor’s average purchase price on social media. “Been buying BTC for 5+ years with nearly zero profit. Down even worse when adjusted for inflation,” someone reacted.

“If BTC keeps falling like this, MicroStrategy will really become a micro strategy,” wrote another, poking fun at Strategy’s prior business name which originally played on the dot-com name Microsoft.

Investors value Strategy almost entirely based on its BTC holdings. Specifically, relative to its $41 billion market capitalization, the company’s operational activities and legacy software generated less than $500 million in total revenue over its trailing 12-month period.

Over the next few years, Strategy simply needs to service operational expenses and small coupon payments to bondholders.

Its board of directors also voluntarily declares dividends to its preferred shareholders, which it can suspend at any time.

As of October 24, 2025, the company’s annualized dividend and interest expenses were $689 million.

The company’s dividend obligations could actually increase over time — especially if the price of its preferred shares decline.

Saylor just raised the dividend rate on STRC, for example, another 0.25% last week. What started as a 9% dividend rate has become 11.25%.

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