Bitcoin Holds Near Strategic Cost Basis MSTR Slides 5

On Tuesday, Bitcoin dipped to an intraday low of 72,863, causing MicroStrategy shares to plummet by as much as 9 at one point. By the Wall Street close, MSTR ended the day approximately 5 lower. This sharp movement impacted several Digital Asset Training DAT companies tied to the broader crypto market.
All eyes are on MicroStrategy as the spot price of Bitcoin fell below the company s average cost basis of 76,052 per coin earlier in the day. Despite the MSTR stock losing over 14.9 in the last week and 65 over the past six months, founder Michael Saylor remains defiant. Saylor insisted on his strategy:
Bitcoin Rules: 1. Buy Bitcoin. 2. Don t Sell Bitcoin.
MicroStrategy now finds itself in a high-pressure position with Bitcoin trading extremely close to its average purchase price. However, analysts suggest the company can withstand a drop even to 50,000. Its balance sheet is reinforced by low-interest convertible notes with distant maturity dates, meaning its massive holdings are not subject to immediate liquidation or margin calls.
While the unrealized losses mount during price dips, the company could theoretically use lower prices to further reduce its average cost basis through fresh accumulations. By 4:30 PM ET, BTC attempted a recovery toward the 77,000 mark, but Jamie Redman warns that Bitcoin bears remain on guard and are not yet ready to concede.