Bitcoin Treasury Firms Face Major Losses Amid Market Volatility
By John Nada·Feb 1, 2026·2 min read
Bitcoin treasury firms are facing significant unrealized losses as prices fluctuate. Yet, their strategies remain unchanged, focusing on long-term gains despite short-term volatility.
Bitcoin treasury companies are grappling with significant unrealized losses, yet their strategies remain unchanged even as Bitcoin's price hovers around $78,500. The concept of holding a volatile asset on a corporate balance sheet has led to discomfort during downturns. Companies like Strategy, Metaplanet, and Trump Media illustrate this tension, showing varying degrees of unrealized losses based on their average purchase costs. Strategy, for instance, holds 712,647 BTC with an average cost of $76,037, yielding a paper profit of about $1.76 billion. In contrast, Metaplanet's 35,102 BTC purchased at $107,716 reflects an unrealized loss of roughly $1.03 billion.
Tesla and Coinbase, however, find themselves in a more favorable position, with average costs significantly under current market levels. Tesla holds 11,509 BTC at an average cost of $33,539, equating to approximately $517 million in profit, while Coinbase's 14,548 BTC at $71,465 leads to a paper gain of about $102 million.
The report from CryptoSlate highlighted that the real risk for these companies lies not in the paper losses themselves but in their ability to maintain funding and service obligations during market downturns. Companies must manage their cash flow and financing options effectively, especially when Bitcoin prices decline. For instance, Strategy recently purchased 22,305 BTC between January 12 and January 19, indicating a commitment to maintaining its treasury strategy despite potential volatility.
Newer entrants like Bullish and American Bitcoin Corp face unique challenges, as their average costs are not publicly disclosed, making it difficult to ascertain their true market position. Bullish, with 24,300 BTC, could be experiencing substantial losses if its acquisitions were made at higher price points.
Ultimately, the discomfort surrounding unrealized losses reflects a broader challenge in balancing the desire for Bitcoin's upside with the acceptance of its downside. Companies that can navigate this volatility without being forced to sell or refinance at unfavorable conditions may find themselves better positioned for long-term success. As the market fluctuates, the focus will remain on whether these firms can sustain their strategies and keep their funding mechanisms intact, regardless of the current market narrative.