MicroStrategy’s investment in Bitcoin has suffered a historic unrealized loss, approaching $11 billion as the cryptocurrency’s price slipped below $62,000. This significant downturn follows years of accumulation and comes after the company sold a small portion of its Bitcoin holdings, intensifying market concerns.

The decline accelerated after MicroStrategy sold 32 Bitcoin between late May and early June at an average price above $77,000 per coin. Although this sale represented a minor fraction of its overall stash, the timing proved costly. Since then, the value of MicroStrategy’s Bitcoin portfolio has plunged by nearly 17%, wiping out billions and triggering sharp drops in the company’s share price, which has fallen around 77% from its peak.

Bitcoin’s recent slump coincides with renewed conflict in the Middle East, which has heightened risk aversion among investors. The cryptocurrency lost more than 5% in early Asian trading sessions and has now dropped approximately 16% over the past week. Other major cryptocurrencies have also weakened, with Ethereum falling below $1,800 and Solana dropping to around $69.

Investor skepticism toward MicroStrategy’s Bitcoin strategy has been reflected in its share performance. The decline affected related funds such as MSTU, MSTY, and MSTX, all experiencing elevated volatility. Meanwhile, traditional stock indices tell a contrasting story—while MicroStrategy’s stock cratered, the S&P 500 surged by over 100% in the same period.

Market outflows have added further pressure. U.S.-based spot Bitcoin ETFs recorded net withdrawals for 13 consecutive sessions leading up to early June, totaling nearly $400 million. This sustained exit contrasts with expectations for steady inflows in bullish markets.

Speculative activity has also reflected this environment. Polymarket traders, who bet against the possibility of MicroStrategy selling Bitcoin before the end of May, faced surprise losses when the company disclosed its 32 BTC sale a day after the bet's deadline. The related contract saw around $80 million in trading volume.

Simultaneously, key stock indices like Nasdaq 100 continued their upward trajectory, hitting new highs even as cryptocurrencies faltered. Over the past year, Nasdaq climbed approximately 41%, while Bitcoin’s value decreased by nearly 38%, currently trading close to 48% below its yearly peak.