Bitcoin corporate holdings are experiencing unrealized losses of up to 80%, with institutional cost lines becoming a key market resistance level

On March 10, according to a post analysis by Charles Edwards, founder of Capriole Investments, as Bitcoin prices continue to stay below the average purchase cost for companies, nearly 80% of firms holding BTC as reserve assets are facing unrealized losses.

Data shows that the simple average cost of corporate holdings is about $90,000, and the volume-weighted average cost is as high as $81,000. At current market prices, these are well below most companies' purchase prices, putting institutional investors under significant unrealized loss pressure.

Edwards bluntly stated that, although historical experience suggests the situation could worsen, he also emphasized that "there are no free Bitcoin gains," implying investors should view the current unrealized losses rationally.

However, Edwards also pointed out a positive signal: amid widespread pressure on institutions, the net buying volume of corporate and ETF holdings turned positive on the day he posted, exceeding the average level by 200%. The last time such a level was seen, Bitcoin was near $90,000, which is "very good news, especially during wartime."

MicroStrategy is a typical example of institutional buying willingness, having recently purchased 17,994 BTC at an average price of about $71,000. Although its total holdings currently face approximately $6 billion in unrealized losses, its continued buying behavior demonstrates some institutions' firm optimism about long-term value.

More macro-level supply data also supports institutional accumulation. Analyst Darkfost pointed out that current BTC reserves on centralized exchanges have fallen to the lowest level since 2019.

Additionally, since the launch of various exchange-traded funds (ETFs) in January 2024, about 1.3 million BTC have been absorbed.

Meanwhile, corporate treasury institutions hold about 1.1 million BTC, which accounts for nearly 5% of the total Bitcoin supply.

In summary, this ongoing accumulation effect, combined with the decreasing exchange stock, may create a supply-demand imbalance that could build momentum for future price breakthroughs above the cost line.

As of press time, Bitcoin is consolidating around $70,000, down approximately 44% from its all-time high, with the market engaged in intense long and short battles near the institutional cost line.

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