Corporate Bitcoin Holders Face Losses as Market Struggles

Nearly 80% of companies holding Bitcoin as a treasury asset are currently experiencing unrealized losses. This significant statistic comes as Bitcoin (BTC) trades well below the average purchase price, raising concerns among institutional investors. According to an analysis by Charles Edwards, founder of Capriole Investments, the simple average cost basis for corporate Bitcoin holdings hovers around $90,000, while a weighted average—considering larger holders—drops to approximately $81,000. At present, Bitcoin’s market price is significantly lower than both averages.

Edwards noted that the overwhelming majority of corporate treasuries are underperforming, stating, “At 80%, almost all treasuries are at a loss on their Bitcoin purchase today.” He cautioned that if the market trajectory mirrors that of 2022, losses could deepen. The situation underscores the lack of yield opportunities in the current market, as he remarked, “There is no free Bitcoin yield.”

Institutions are also feeling the impact of the market downturn. The average institutional purchase price for Bitcoin sits near $78,000. This data indicates that even larger players are not immune to losses. Edwards highlighted a notable shift, revealing that treasury and ETF buying had flipped to a net positive by 200% on the day of his analysis. “The last time it was this high, Bitcoin was at $90,000,” he said, emphasizing that this could be a positive development even amid the prevailing market challenges.

One significant corporate player, Strategy, recently purchased 17,994 BTC at an average price of approximately $71,000 each. This acquisition brought its total Bitcoin holdings to 738,731 BTC, valued at around $56 billion. Currently, this position reflects an unrealized loss of around $6 billion at present market prices.

In terms of overall market performance, Bitcoin is currently trading near $71,000, having increased over 4% in the past 24 hours after a rebound from approximately $67,500. Over the past week, Bitcoin has gained 6.4% and has almost doubled that over the last two weeks. Despite this recent uptick, the cryptocurrency remains down nearly 13% year-on-year and is about 44% below its all-time high recorded in October 2025.

As the cryptocurrency market continues to evolve, the experiences of corporate holders raise critical questions about the future of Bitcoin as a treasury asset. The ongoing volatility could lead to further scrutiny of institutional strategies and their long-term viability in the cryptocurrency sphere.