Strategy’s Bitcoin Treasury Turns Red as BTC Slips Below $76,000
January 31 2026
A sharp intra‑week price correction pushed Bitcoin (BTC) beneath the $76,000 mark, a level it has not seen since the market’s April 2025 trough. The decline erased roughly $800 million in unrealised gains across the crypto sector and forced micro‑investment firm Strategy (ticker: MSTR) to record its first negative balance on its corporate Bitcoin holdings.
What happened
- Weekend sell‑off: Over the last two days Bitcoin dropped more than 7 % on a low‑liquidity trading environment, taking the BTC/USD pair from just above $81 k to under $75.5 k.
- Liquidity cascade: The rapid price movement triggered a cascade of margin calls and leveraged liquidations that collectively wiped out about $800 million in short‑term positions.
- Technical breach: The price slipped beneath the so‑called “true market mean” – an aggregate of the cost bases of all currently active BTC – estimated at $80.7 k. This is the first time the mean has been undercut since October 2023, when Bitcoin was trading near $29 k.
- Key support zones: Analysts are watching the $74.5 k–$73 k range, the latter historically acting as a floor during the 2022‑23 bear market. A break below $73 k could reopen a path toward the $70 k‑$68 k band, which marked the peak of the November 2021 bull run.
Impact on Strategy’s treasury
Strategy, the publicly traded firm that amassed the largest corporate Bitcoin reserve, holds just over 700,000 BTC. The firm’s average acquisition cost for the cryptocurrency now sits near $76,000 per coin, meaning the current market price places the treasury in the red.
- Balance‑sheet hit: With Bitcoin trading below the average cost, the unrealised loss on the treasury is estimated at several hundred million dollars.
- Stock reaction: MSTR shares have fallen roughly 70 % from their July‑2024 high of $455, trading around $143 at the time of writing. The equity price movement mirrors the broader sentiment that the firm’s Bitcoin exposure is a double‑edged sword—providing upside in bull markets but magnifying downside risk when the asset underperforms.
- Management stance: Strategy’s leadership has repeatedly emphasized a long‑term view, noting that short‑term price swings do not alter the company’s conviction in Bitcoin as a store of value. Nevertheless, the current deficit raises questions about potential balance‑sheet restructuring, secondary sales, or hedging strategies to mitigate further erosion.
Market analysis
- Liquidity constraints: The weekend’s thin order book amplified price swings. As more traders unwind leveraged positions, volatility is likely to stay elevated until deeper liquidity returns.
- Macro backdrop: Despite Bitcoin’s underperformance relative to equities, traditional assets such as stocks and precious metals have been reaching new highs. This divergence may shift capital away from risk‑on crypto assets, at least in the near term.
- On‑chain indicators: The breach of the true market mean suggests that the majority of BTC holders are now in loss territory, a condition historically associated with prolonged corrective phases.
- Investor sentiment: Institutional exposure,ified by Strategy’s sizable holding, is increasingly being judged by the asset’s price performance. A sustained rally above $80 k could restore confidence, whereas further declines may trigger additional corporate sell‑offs.
Key takeaways
- Bitcoin’s price fell to sub‑$76 k levels, marking its lowest point since April 2025, after a 7 % slide that triggered $800 million in liquidations.
- The move pushed BTC below its true market mean of $80.7 k, a signal that most active supply is presently underwater.
- Strategy’s corporate treasury, the largest in the crypto space, now records a negative unrealised balance as the average cost of its 700,000+ BTC exceeds current market prices.
- MSTR’s stock price reflects the treasury’s performance, trading down 70 % from its July‑2024 peak.
- Short‑term volatility is expected to persist due to low weekend liquidity; key support lies near $74.5 k, with a further drop to $70 k‑$68 k potentially reopening the corridor of the 2021 bull‑run high.
- Long‑term investors remain bullish on Bitcoin, but corporate exposure may prompt more conservative balance‑sheet management if the downturn extends.
The information presented here is for educational purposes only and does not constitute investment advice. Readers should conduct their own due diligence before making any financial decisions.
Source: https://cointelegraph.com/news/bitcoin-crashes-76k-strategy-cost-basis-2b-liquidation?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound
