Strategy Facing Bankruptcy Over Bitcoin Investment Losses? Coin Bureau Says ‘Crisis Rumors Are Fake’

▲ Bitcoin (BTC), Strategy (MSTR) / ChatGPT-generated image

Strategy, the world’s largest corporate holder of Bitcoin (BTC), has reportedly recorded an unrealized loss of approximately $6 billion, sparking speculation about a potential crisis. However, analysts suggest that the actual likelihood of default remains extremely low.

Nic Puckrin, host of the cryptocurrency-focused YouTube channel Coin Bureau, said in a video uploaded on February 22 (local time) that Strategy is currently sitting on about $6 billion in unrealized losses, given its average purchase price of approximately $76,027 for its 717,131 BTC holdings. Puckrin noted that the company, which manages $54.5 billion in Bitcoin assets—equivalent to about 3.4% of the total Bitcoin supply—is undergoing its most significant stress test since adopting its corporate treasury model centered on Bitcoin.

The widely circulated claim that Strategy faces liquidation at $8,000 per Bitcoin is largely theoretical and far removed from an actual forced liquidation scenario. The $8,000 figure mentioned by CEO Phong Le refers to the threshold at which the value of the company’s Bitcoin holdings would equal its net debt, rather than a traditional liquidation price tied to margin lending. Additionally, the $8.2 billion in convertible bonds issued by Strategy are unsecured, meaning a decline in Bitcoin’s price does not automatically trigger asset sales.

However, a more tangible challenge lies ahead in September 2027, when $1 billion in debt matures. Although Strategy currently holds $2.25 billion in cash reserves—providing roughly 2.5 years of operational runway—a prolonged bear market could force the company to sell Bitcoin to raise liquidity. Puckrin also warned that imitator firms with weaker financial structures may be at greater risk, citing Bitmine Immersion, which accumulated large amounts of Ethereum (ETH) and is reportedly facing losses of $7.9 billion.

If a wave of asset manager failures were to occur, the market could suffer from a dual shock of collapsing demand and surging supply. Strategy alone purchased 41,000 BTC in January, helping to support the market. Should such buying pressure disappear while forced selling accelerates as companies scramble for cash, downward pressure on prices could intensify. Recent movements, such as Marathon Holdings transferring 1,400 BTC to exchanges, suggest that major holders may already be preparing for potential turbulence.

Considering that Bitcoin’s production cost ranges between $40,000 and $87,000, a drop to $8,000 appears highly improbable and could instead represent a market cleansing process. Institutional capital, including BlackRock’s IBIT, continues to provide strong downside support, facilitating a healthy correction in which overleveraged firms are filtered out and supply shifts to long-term holders. With substantial cash liquidity, Strategy is likely to weather the current volatility, and the market’s fear-driven noise is expected to gradually subside.

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