MicroStrategy, the world's largest corporate bitcoin holder, has fallen underwater on its cryptocurrency investments. According to the company's most recent SEC filing dated November 9, MicroStrategy holds 850,364 BTC purchased for an aggregate of $64.16 billion, at an average price of $75,456 per coin.
With bitcoin trading near $67,200 following a recent decline, MicroStrategy's holdings are valued at approximately $56.9 billion, resulting in an unrealized loss of roughly $7.2 billion. The company would need bitcoin to rally approximately 12.7% to reach breakeven on its holdings.
Recent Bitcoin Decline
Bitcoin has experienced significant losses in recent trading, falling more than 20% from its September peak and entering bear market territory. The cryptocurrency is currently down approximately 11.6% over the past seven days and 17% over 30 days, trading roughly 47% below its October 2025 all-time high of $126,080.
The broader crypto market experienced sharp liquidations, with over $330 million in positions liquidated across the sector in a two-hour period during the recent downturn.
MicroStrategy's Stock and Index Exclusion
MicroStrategy's share price has declined significantly, closing Friday at $111.62, down approximately 22% from its November 4 close of $142.54. The decline followed MSCI's decision to remove the company from its indexes, a move CEO Phong Le characterized as having limited impact, stating that approximately 3% of the company's shares are tied to MSCI indexes.
Dividend Coverage and Financial Position
Despite the paper losses, MicroStrategy maintains a U.S. dollar reserve of $4.77 billion, designated for preferred dividends and debt interest payments. The company used $21.1 million of this reserve for dividend payments during the prior week. This reserve structure means the company is not required to sell bitcoin to cover dividend obligations.
MicroStrategy continued purchasing bitcoin during the recent decline, adding 1,036 BTC at an average price of $79,012 through stock sales, according to its November 9 filing.
