Bitcoin’s rapid selloff is putting the most famous corporate BTC holder under pressure. As noted by The Kobeissi Letter, Bitcoin briefly dropped to $80,500 this week, placing MicroStrategy only 8 percent above its average entry price of $74,433. That is a stunning reversal considering the same position was up roughly 70 percent just 46 days ago.
The company’s stock has been hit even harder, falling nearly 70 percent from its record high as investors reassess the risks of such aggressive Bitcoin exposure.
The chart shared by The Kobeissi Letter shows the steep decline clearly. Bitcoin peaked in early October, then began a steady downtrend with lower highs and lower lows. Each failed bounce intensified the selling until price broke below $90,000 and accelerated toward $80,000.
If the decline continues, the next psychological level becomes MicroStrategy’s cost basis near $74,000, which would flip the firm’s entire Bitcoin position into negative territory for the first time since the rally began.
MicroStrategy currently holds more than 472,000 BTC, and its strategy has always been simple: buy more regardless of market conditions. CEO Michael Saylor has positioned Bitcoin as a long-term monetary asset rather than a trade. That conviction helped the company through previous corrections, including multiple 50 percent drawdowns during earlier cycles. The difference this time is scale.
The position is now worth more than $39 billion, and market reactions to MicroStrategy’s moves have become more noticeable. As the chart illustrates, when Bitcoin falls, MicroStrategy’s share price tends to fall even faster because investors price in leverage, debt, and execution risk.
This selloff also reflects broader market stress. Global liquidity has tightened, crypto ETFs have seen outflows, and Bitcoin’s correlation to equities has strengthened again. Fear-driven selling can push prices further than fundamentals justify, especially when derivatives liquidations accelerate downside momentum. In that environment, even strong long-term holders feel pressure, and MicroStrategy is no exception.
Still, betting against Saylor has historically been a losing trade. Each major downturn has led to new accumulation and new highs later on. Long-term holders continue to remove supply from exchanges, and institutional adoption trends have not reversed. If Bitcoin stabilizes and demand returns, MicroStrategy could regain its paper gains quickly.
For now, though, the chart tells a simple story. MicroStrategy’s Bitcoin bet has entered its most important phase of the cycle. If price rebounds, the company’s strategy will be validated once again. If not, markets will find out how much conviction really costs.
Read also: The Hidden Reason Crypto Is Crashing as Bitcoin Price Falls Below $86,000
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