Bitcoin Slumps to $60,000, MicroStrategy Now Hunted for “Catastrophic” Risk

Jakarta, Pintu News – MicroStrategy has come under market pressure again after the price of Bitcoin (BTC) fell to around US$60,000. The drop has put the company’s Bitcoin treasury value back below its average purchase price and sparked fresh concerns about balance sheet risk.

MicroStrategy shares also fell sharply, bringing the company’s market valuation down below the value of the Bitcoin they hold. This was an important stress signal for the leveraged treasury model that the company had been relying on.

Bitcoin US$60,000, Unrealized Losses Mount up

MicroStrategy holds approximately 713,500 Bitcoin at an average purchase price of approximately US$76,000 per BTC. With the current price near US$60,000, the position is about 21% below cost basis. This difference means a billion-dollar unrealized loss on the balance sheet. Accounting-wise, this loss doesn’t force an asset sale, but it certainly weakens the company’s investment narrative in the eyes of the market.

Investor focus has now shifted from a long-term accumulation story to a simple question: how strong is MicroStrategy’s financial resilience if Bitcoin’s correction phase continues. The sensitivity of stock performance to BTC price movements is also increasingly apparent. Stocks that act as leveraged Bitcoin proxies are automatically pressured deeper when the underlying asset corrects sharply.

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Stock Premiums Missing, Stock Issue Strategy Hits a Snag

MicroStrategy’s market net asset value (mNAV) metric is now around 0.87x, meaning the stock is trading at a discount to the value of Bitcoin on the balance sheet. Previously, MSTR shares often traded at a significant premium, so issuing new shares to buy Bitcoin was accretive to shareholders. The premium is key to the “issue shares at a premium, convert to Bitcoin” model.

With an mNAV below 1, new equity issuances are potentially highly dilutive. In practical terms, this limits the company’s ability to continue adding to its Bitcoin position through the channels it has relied on the most. Without access to equity market premiums, the aggressive expansion model becomes much more difficult to replicate under current market conditions.

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Still Solvent, but Maneuvering Room Narrowing

Despite the increasing pressure, MicroStrategy’s situation is not yet categorized as a solvency crisis. In the past two years, the company has raised around US$18.6 billion through share issuance in much more favorable market conditions.

The debt structure is also relatively safe, with a long maturity and no immediate margin call scheme linked to Bitcoin’s spot price at current levels. This provides a short-term cushion for the company.

However, the risks ahead remain significant. The “catastrophic” risk increases if three things happen simultaneously: Bitcoin’s price stays far below average cost for a long time, mNAV continues to be in the discount area, and access to capital markets weakens.

In that scenario, refinancing options narrow, dilution risk increases, and investor confidence could erode further. MicroStrategy is still solvent, but the margin for error is now very thin and highly dependent on the next phase of the Bitcoin market cycle.

Conclusion

Bitcoin’s fall to around US$60,000 put MicroStrategy’s treasury model in a serious endurance test phase. Large unrealized losses, loss of share premium, and limited expansion options made the company shift from expansion mode to survival mode.

As long as Bitcoin has not returned above its average purchase price and access to funding has not normalized, risk exposure remains high. The fate of this leveraged strategy will ultimately be determined by the direction of the Bitcoin market in the next few quarters.

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Reference

• BeInCrypto. MicroStrategy Faces Catastrophic Risk as Bitcoin Falls to $60,000. Accessed February 6, 2026.
• Featured Image: Business2Community