February 5, 2026 — MicroStrategy, the world’s largest corporate holder of Bitcoin, has seen its unrealized “paper losses” exceed $3.8 billion following a significant downturn in the digital asset market. As of early 2026, Bitcoin’s price has fallen below the $71,000 mark, a level not seen since the 2024 election.
Market Volatility and Liquidations
The decline was accelerated by a massive wipeout of over $777 million in “long” positions—bets that the price would rise—liquidated within a single day. This volatility has contributed to Bitcoin’s 19% drop year-to-date. For MicroStrategy, which holds 713,502 Bitcoins purchased at an average price of $76,052 each, the total value of its position has plummeted by approximately $40 billion in just four months.
Impact on MicroStrategy Stock
The company’s stock (MSTR) has been heavily impacted by the price slide, as Wall Street investors frequently treat MSTR as a leveraged proxy for Bitcoin. On the Wednesday preceding this report, MSTR shares fell by more than 5%. The stock has now declined 72% from its peak reached in July 2025.
Financial and Analyst Response
In response to the shifting market, financial services firm Canaccord Genuity significantly adjusted its outlook, cutting the price target for MSTR from $474 down to $185. Meanwhile, Executive Chairman Michael Saylor and other stakeholders continue to monitor the company’s “mNAV” (market Net Asset Value) and debt levels as the global digital asset market remains under pressure.
