Bitcoin Market Correction and Company Holdings
Disclaimer: The author of this article has a financial interest in Strategy (MSTR).
As the cryptocurrency market experiences a notable correction, which followed the reactions of traditional financial markets to President Donald Trump’s tariffs, bitcoin (BTC) has plunged to its lowest point in five months. The digital currency fell to approximately $74,500, representing a significant one-third decrease from its peak of $100,000 reached on January 20. This downturn has left Strategy (MSTR) with a modestly positive outlook on its bitcoin acquisition strategy. With a total investment of $35.6 billion, the company currently boasts an unrealized profit of about 10%, which equates to roughly $3.9 billion on its BTC holdings.
Strategy now owns 528,185 BTC, valued at around $39.5 billion, establishing an average cost basis of $67,458 per bitcoin. Interestingly, the company’s market-to-net asset value (mNAV) multiple—calculated by dividing its market capitalization by the total value of its holdings—remains just below 2. This suggests that the stock is still trading at a premium relative to its underlying assets.
According to research conducted by CoinDesk, Strategy faces no liquidation risk even if bitcoin’s value were to dip below its current cost basis. As of April 2, Metaplanet (3350) reported bitcoin holdings of 4,206 BTC, which were acquired at an average price of 12,925,027 yen (approximately $88,800) per coin. This places the Japanese firm about 15% underwater concerning its bitcoin investment strategy. Reflecting the mounting pressures from the market downturn, the stock price dropped by 20% on Monday alone.
Similarly, Semler Scientific (SMLR) has encountered losses related to its bitcoin holdings, with an average acquisition cost of $87,854 per BTC, as disclosed in its most recent filing in February. As bitcoin has declined by 20% this year, Semler has recorded a loss of 38%, while Metaplanet has seen a 15% decline and Strategy has experienced a more modest 2% drop.
