Key Insights:
- Bitcoin’s price drop leaves 77% of corporate Bitcoin treasury firms with losses, according to analyst Charles Edwards.
- Strategy holds 720737 BTC, and the Bitcoin price remains below its average purchase cost of 75985.
- Bitcoin ETFs recorded two weeks of inflows despite a 46% Bitcoin drawdown and mixed daily fund flows.
The recent drop in Bitcoin’s price has put a lot of pressure on corporate treasuries that had hoarded the asset at high prices. Bitcoin is now trading at about $67,515, or about 46.5% below its all-time high of $126,198 in October 2025.
Bitcoin Price Drop Puts Corporate Treasuries Under Pressure
Data highlighted by crypto analyst and Capriole fund founder Charles Edwards indicates that a large majority of corporate Bitcoin treasuries are currently underwater. Edwards stated in a recent post on X that approximately 77% of Bitcoin treasury companies now hold the asset at a loss relative to their purchase price.
According to Edwards, the last time such a situation occurred was in May 2022, a period associated with major disruptions across the digital asset market.
Source: Capriole fund founder Charles Edwards
The current Bitcoin price level has placed several corporate treasury strategies under strain. Firms that accumulated large Bitcoin reserves during earlier market cycles now hold positions that are valued below their average purchase cost.
Charles Edwards noted that the proportion of corporate treasury companies currently holding Bitcoin at a loss has reached 77%. He pointed out that the last time such a situation occurred was in May 2022.
The previous example was associated with the failure of the TerraUSD stablecoin ecosystem. That project failed, triggering a chain of corporate and market shocks in the digital asset market that affected Bitcoin’s price and businesses with significant exposure on their balance sheets. While the current environment differs in several respects, the renewed decline in Bitcoin price has again pushed corporate treasury positions into negative territory.
Strategy’s Bitcoin Holdings Fall Below Average Purchase Cost
The drop in Bitcoin’s price has also affected Strategy’s treasury holdings, a company widely known for its large Bitcoin reserve. Bitcoin currently trades well below the Strategy’s reported average acquisition price of approximately $75,985 per coin.
As of March 1, Strategy holds about 720,737 BTC, acquired for roughly $54.77 billion. Based on the average purchase price, the current market value of the company’s holdings implies billions of dollars in unrealized losses.
The company’s stock performance has also weakened during the same period. The common shares of Strategy have fallen for eight straight months, erasing over 70% of the company’s market capitalization since November 2024.
Economic Data Follows Bitcoin Price Volatility.
Bitcoin declined sharply after a brief surge earlier in the week. The cryptocurrency climbed to approximately $74,100 on March 4 before entering a three-day decline.
The sell-off pushed the Bitcoin price below $67,000 as investors responded to economic data from the United States and other major countries. Bitcoin fell to a weekend low of $66,541 before rebounding slightly to around $67,515 due to developments.
A weaker-than-expected United States jobs report raised concerns about the economic outlook. Market participants subsequently began assessing the possibility that the Federal Reserve could adjust interest rates during its upcoming policy meeting later this month.
Bitcoin ETFs Record Consecutive Weekly Inflows
Despite the decline in Bitcoin price, institutional investment through exchange-traded funds has shown signs of renewed activity. U.S. spot Bitcoin ETFs recorded their second consecutive week of net inflows, marking the first back-to-back weekly gains in approximately five months. According to data from SoSoValue, such products received net inflows of approximately $568.45 million in the last week.
Spot Bitcoin ETFs have recorded outflows totaling about $3.8 billion over the past five weeks, before the new inflows. The largest weekly withdrawal occurred in the week ending January 30, when funds recorded net outflows of about $1.49 billion.
Daily flows during the most recent week were mixed. The ETFs recorded inflows of roughly $458.19 million on Monday, $225.15 million on Tuesday, and $461.77 million on Wednesday. However, the trend reversed later in the week, with outflows of $227.83 million on Thursday and $348.83 million on Friday.
Fernando Nikolić, Blockstream’s director of marketing, commented on the scale of ETF demand in a post published Saturday on X. Nikolić noted that Bitcoin ETFs have accumulated inflows comparable to approximately 15 years of cumulative inflows into gold ETFs.
According to his statement, this milestone occurred within less than 2 years of Bitcoin ETFs entering the market. Nikolić also observed that the inflows took place during a period when Bitcoin experienced a drawdown of about 46% and several months of negative price performance.
