NEW YORK, Feb 4, 2026, 13:34 (EST)
- In early afternoon trading in New York, Bitcoin dropped to around $73,000, dipping below Strategy’s average buy price for the cryptocurrency
- Strategy revealed a new bitcoin buy, using proceeds from stock sales, even as its shares dropped over 8%
- On Feb. 2, U.S. spot bitcoin ETFs saw $562 million in inflows, only to reverse sharply with $272 million in outflows the following day, Feb. 3
Bitcoin dipped to roughly $73,000 on Wednesday, dragging Strategy’s massive bitcoin holdings below their average buy-in. Shares of the firm, once MicroStrategy, plunged sharply as a result.
The shift comes amid a stress test for the “bitcoin treasury” strategy — where public firms and funds that grabbed bitcoin during the 2025 rally are now under pressure, frequently having leveraged stock and debt to boost their bets.
Investors are eyeing a second-order effect: will ongoing losses push some holders to sell at poor prices, or will the market absorb the leverage smoothly and keep moving?
Traders have been pushed out of $2.56 billion worth of bitcoin positions recently, according to CoinGlass data, as crypto fell alongside other risk assets. Adam McCarthy, a Kaiko analyst, said market participants are “taking a step back” to “reassess their risk frameworks.” Jim Ferraioli from Charles Schwab pointed to “outside forces,” while David Morrison at Trade Nation noted investors “finally got several” reasons to reduce risk. 1
Strategy disclosed in an SEC filing that it acquired 855 bitcoin for $75.3 million in the week ending Feb. 1, with an average price of $87,974 per coin. The company financed the purchase through an at-the-market (ATM) stock program, selling 673,527 shares to raise $106.1 million in net proceeds. According to the filing, its total bitcoin holdings now stand at 713,502 coins, purchased for $54.26 billion at an average cost of $76,052 each. 2
Bitcoin hit $73,382 by early afternoon in New York, leaving the average cost above current prices. Strategy shares dipped to $122.29, down roughly 8%, hitting an intraday low close to $121.
U.S.-listed spot bitcoin ETFs, which own the token outright, are feeling the pressure too. They saw net inflows of $561.8 million on Feb. 2, only to reverse to net outflows of $272.0 million on Feb. 3, according to data from Farside Investors. 3
Firms with shares tied to crypto prices are facing tougher conditions. The Wall Street Journal highlighted that companies sticking to the hoarding strategy—like Strategy and BitMine Immersion Technologies—now show significant paper losses as token values and related stocks fall. 4
Bitcoin dropped to $74,500 on Monday, marking its lowest point since April last year, according to Investing.com. The slide pushed the cryptocurrency below Strategy’s average purchase price. 5
The key issue for Strategy isn’t if it must sell bitcoin now. Instead, it’s whether it can continue funding purchases and dividends without heavily relying on equity issuance amid a falling stock and rising volatility.
The path isn’t set in stone. A bounce back in bitcoin, steadier ETF inflows, or a more stable macro environment could swiftly relieve pressure — extending the life of the “leveraged proxy” trade into another cycle.
