Majority of Companies Holding Bitcoin Facing Losses
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A significant number of corporations that have invested in Bitcoin (BTC) as part of their treasury strategy are now experiencing substantial unrealized losses. Analysis by Charles Edwards, the founder of Capriole Investments, reveals that approximately 80% of these firms are currently underwater.
This situation arises as Bitcoin approaches the $71,000 mark, prompting discussions on whether the prevalent financial strain among institutional investors represents a foreboding signal or presents a potential buying opportunity for others.
Edwards shared insights on March 10, emphasizing that the average cost basis for Bitcoin held in corporate treasuries stands around $90,000. This figure is significantly higher than Bitcoin’s current trading price. When examining larger investors, the average purchase price diminishes to about $81,000. Notably, regardless of the method of calculation, Bitcoin’s market price remains under both these benchmarks.
The analyst pointed out that nearly all corporate treasuries have faced losses on their Bitcoin acquisitions. He expressed concerns, indicating that if market trends mirror those of 2022, the situation might worsen. He remarked that there is no free yield to be had from Bitcoin.
Further analysis showed that many institutional investors are also facing challenges, with their average purchase price near $78,000. It was also noted that exchange-traded fund (ETF) holders find themselves similarly affected.
Nonetheless, Edwards highlighted a notable point: treasury and ETF purchases experienced a remarkable 200% uptick on the day of his analysis. He mentioned that the last time activity reached such heights, Bitcoin was valued at $90,000, labeling this trend as positive news, particularly in light of ongoing global conflicts.
One example of this renewed interest was highlighted by Strategy, which disclosed a recent acquisition of 17,994 BTC at an average cost of about $71,000 per coin. This purchase increased their overall holdings to 738,731 BTC, representing a total investment of around $56 billion. At current valuations, this entity faces an unrealized loss of nearly $6 billion.
In a separate note, Strategy’s perpetual preferred stock reached a new trading volume high for 2026, amounting to $299 million as of March 9, which could facilitate an additional purchase of approximately 1,360 BTC.
The situation surrounding Bitcoin supply adds another layer of context to the ongoing narrative of institutional accumulation. Analyst Darkfost pointed out that reserves of Bitcoin on centralized exchanges have decreased to levels not observed since 2019. Furthermore, ETFs have collectively acquired about 1.3 million BTC since their launch in January 2024, while organizations controlling treasury assets hold roughly 1.1 million BTC, constituting nearly 5% of Bitcoin’s total supply.
As of now, Bitcoin is trading around $71,000, reflecting an increase of over 4% within the past 24 hours after recovering from a low of approximately $67,500. Over the past week, the asset has appreciated by 6.4%, with a more impressive 14-day gain. However, it remains nearly 13% lower than its value a year ago and approximately 44% below its all-time peak reached in October 2025.
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Gregory Russell
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