Here’s How Much Bitcoin Needs to Drop from Here to Put Strategy’s Bitcoin Portfolio in the Red

Strategy’s Bitcoin portfolio risks turning red for the first time in two years as recent market declines push the asset closer to the firm’s average price.

Bitcoin has corrected 20% from its opening price at the start of the year and 31% from its all-time high of $109,312, which it attained on January 20. This massive capitulation has raised skepticism among market participants, especially as the global economy faces uncertainty.

Meanwhile, the crash has triggered massive losses for Bitcoin holders, with others who bought cheaper at risk of facing a similar plight. Among large holders at risk of being in the red is Michael Saylor’s self-acclaimed Bitcoin development firm, Strategy.

Bitcoin’s Capsizes Pushing Towards Strategy’s Breakeven

At some point this year, Strategy (formerly MicroStrategy) was at an unrealized profit of over $13 billion. The firm’s massive bet on Bitcoin, the largest cryptocurrency by market cap, was paying off, receiving accolades from the global community.

Meanwhile, the pioneering cryptocurrency’s price has gone south recently, and Strategy is at risk of nursing unrealized losses on its holding. Interestingly, the Saylor co-founded business intelligence firm’s average Bitcoin cost was $29,803 in April 2023, when its portfolio turned green for the first time since June 2022.

However, the average cost of Strategy’s portfolio has increased to $67,485 due to its incessant purchases and Bitcoin’s blossoming price performance in 2024 and early 2025. Moreover, its stash skyrocketed from nearly 140,000 BTC then to a staggering 528,185 BTC now.

At the time of writing, Bitcoin trades at $75,203, correcting nearly 4% today. With this development, the premier asset needs to further retrace by 10.26% to hit Strategy’s dollar-cost average (DCA) price. A higher capitulation would see the pro-Bitcoin firm nurse unrealized losses on its portfolio for the first time since April 2023.

Reactions Trail Latest Development

Meanwhile, Peter Schiff, a long-standing Bitcoin critic, has reacted to the possible break-even. In a Sunday tweet, he taunted Strategy following Bitcoin’s crash, asking Saylor to go borrowing again for more purchases if he wanted to prevent a capsize below its average price.

Attention @saylor, now that Bitcoin is below $80K, if you want to prevent it from crashing below your average cost of $68K, you had better back up the truck with borrowed money today and go all in.

— Peter Schiff (@PeterSchiff) April 6, 2025

Edo Farina, a staunch XRP enthusiast, also highlighted Bitcoin’s trend towards Strategy’s break-even. He noted that the proximity is the thin line between users moving from calling Saylor a visionary executive chairman to receiving backlash over his Bitcoin acquisition strategy.

Nonetheless, Strategy still has an unrealized profit of $3.9 billion, as its stash is currently worth $39.57 billion.