A significant portion of the Bitcoin reserves held by public corporations is now trading below their initial acquisition cost, putting pressure on balance sheets and raising questions about the resilience of institutional crypto strategies. According to a new analysis by Capriole, an estimated 77.4% of listed companies with Bitcoin on their books are currently in the red, while nearly two thirds of them are recording losses of over 20% compared with their average entry price. With Bitcoin circling $67,001, the average portfolio cost for many major players now stands well above spot prices.
Corporate Entry Points Reveal Widespread Underwater Positions
The financial reality for companies with the largest institutional Bitcoin holdings is stark. Strategy firm led by Michael Saylor, for instance, holds approximately 738,731 Bitcoins, acquired at an average cost of $75,863 each—a level that currently leaves the company about 12% in the red. Metaplanet, sitting on 35,102 Bitcoins bought at an average price of $97,000, is facing even steeper losses, exceeding 31%. In contrast, Semler Scientific appears to be the rare exception; having purchased its Bitcoin at roughly $65,000 apiece, it remains marginally profitable at current market values.
Loss Magnitude and the Weight of Debt
Companies with portfolios carrying losses above 20% reflect mounting financial stress across the sector. For firms able to hold their Bitcoin long-term without heavy debt obligations, short-term price gyrations are manageable. However, those that have leveraged their positions or are responsible for dividend payments through preferred shares may face additional pressure as losses deepen. In events of sharp market corrections, the need to liquidate Bitcoin to meet liquidity requirements becomes a significant concern, especially for firms tethered to debt-led strategies.
Analysis from Strive underlines that Semler Scientific’s recent debt repayments illustrate a conscious move to shore up defenses. The firm’s near-complete elimination of debt, alongside a strategy to soon operate entirely debt-free, serves as a buffer against potential price downturns and the need for forced Bitcoin sales.
Historic Patterns Offer Perspective
Capriole’s data tracing trends from early 2022 through to 2026 shows that episodes of such deep losses have occurred before. In the drawdown between late 2021 and early 2023—when Bitcoin plunged from $69,000 to as low as $16,000—similar stress levels rocked corporate holders. Yet, a price rebound in subsequent months saw most companies return to profitability.
The current situation stands out in that significant corporate losses are being logged at much loftier price levels compared to earlier cycles. Institutions that bought Bitcoin in the $60,000–$100,000 range over the past two years remain underwater, while those who entered at these levels in previous cycles were typically in profit. The average entry cost for institutional investors has visibly risen with each new buying wave, stacking the odds against rapid recovery.
The average purchase price of $75,863 reported by Michael Saylor’s company remains a focal benchmark for institutional Bitcoin investment performance. The firm evaluates its position by calculating Bitcoin holdings per share—a metric the market closely watches. The sustainability of this approach ultimately hinges on whether the company’s debt obligations, at any point, require selling Bitcoin at unfavorable prices to fulfill payment commitments.
Periodic episodes in the crypto market where public companies collectively register significant portfolio losses have heightened industry anxiety. However, these stress points have historically coincided with subsequent rebound cycles, offering hope for a potential turnaround should historical patterns persist.
