Bitcoin (BTC) Price: Slide Below $75,451 Puts Strategy’s 849,327 BTC $500M Underwater

TLDR

• Bitcoin traded at $74,862.89 on Coinbase on Sunday, Nov. 8, about 0.78% below Strategy’s $75,451 average purchase price.
• Strategy’s 849,327 BTC were worth about $63.58 billion, roughly $500 million less than their $64.08 billion cost.
• None of Strategy’s bitcoin was pledged as collateral as of Sept. 30, according to its quarterly filing.
• The company held a $4.79 billion reserve for preferred dividends and interest, plus $132.7 million in cash.
• The earliest date noteholders can demand cash repayment is Sept. 15, 2027.

Bitcoin slipped below the average price Strategy paid for its coins on Sunday, Nov. 8. The move left the company’s bitcoin holdings worth less than what it cost to buy them.

A trade on Coinbase’s BTC-USD market printed at $74,862.89 at 4:54 p.m. ET. That price sat about 0.78% under Strategy’s average purchase price of $75,451 per coin.

Strategy, a bitcoin treasury company, reports its holdings in regular filings. Its latest update, filed Nov. 2, showed 849,327 BTC bought for $64.08 billion as of Nov. 1, including fees and expenses.

At Sunday’s price, those coins were worth roughly $63.58 billion, according to a calculation by The Defiant. That left a gap of about $500 million between the market value and the purchase cost.

The drop matters most for common shareholders. Debt holders and preferred stockholders have claims that rank ahead of them, so a lower bitcoin value shrinks the assets backing common shares.

Where the $500 Million Gap Fits on the Balance Sheet

A price below cost basis is not a deadline for repayment. The amount Strategy paid for its bitcoin is a separate figure from what the company owes.

Strategy’s debt dashboard lists $6.71 billion in convertible notes. The company’s main dashboard also lists $13.14 billion in preferred stock.

Together, those claims total $19.85 billion. They are distinct from the $64.08 billion Strategy spent building its bitcoin position.

In its latest quarterly filing, Strategy said all of its bitcoin was unencumbered as of Sept. 30. That means none of the coins were pledged as collateral for loans.

Because of this, a bitcoin price under the purchase cost does not on its own create a collateral shortfall. It also does not trigger an immediate need to repay debt.

Strategy also reported a $4.79 billion U.S. dollar reserve as of Nov. 1. The company set this money aside to support preferred dividends and interest payments.

Separate from that reserve, Strategy held $132.7 million in cash for broader treasury needs. Both figures came from the Nov. 2 filing.

Next Dates on Strategy’s Calendar

The earliest scheduled date when noteholders can demand cash is Sept. 15, 2027. On that date, holders of Strategy’s $1.01 billion in 2028 convertible notes can require repayment, according to the quarterly filing.

That date is more than 10 months away. All of Strategy’s other outstanding convertible notes have later put dates.

Strategy’s stock, MSTR, closed Friday’s regular session at $128.93, down 0.29%, according to the company’s dashboard. That close came before bitcoin’s Sunday dip below the cost basis.

This means the share price did not reflect the weekend move in bitcoin. U.S. stock markets were closed when the Coinbase trade printed.

U.S. equity index futures were set to reopen at 6 p.m. ET on Sunday. That reopening came about an hour after bitcoin traded below Strategy’s $75,451 average cost.

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