Approximately 80% of corporate entities investing in Bitcoin (BTC) are currently experiencing unrealized losses, as highlighted in an analysis by Charles Edwards, founder of Capriole Investments.

This data comes as BTC attempts to rebound towards the $71,000 mark, igniting discussions on whether the prevalent suffering among institutions signals a corrective warning or provides a contrarian investment opportunity.

Financial Dynamics Behind the Discontent

On March 10, Edwards disseminated various charts on X demonstrating that the average cost basis for Bitcoin treasury holdings is around $90,000, significantly eclipsing the current trading price of BTC.

On a weighted average, adjusting for larger holders like Strategy, the purchase price is nearer to $81,000, indicating that major investors secured positions earlier at lower costs. Nevertheless, BTC’s current price remains beneath both metrics.

“At 80%, almost all treasuries are at a loss on their Bitcoin purchase today,” Edwards noted. “Though history suggests this could get worse if 2026 mimics 2022. There is no free Bitcoin yield.”

In that same discussion thread, Edwards observed that institutions generally have poor outcomes with their BTC investments, given that the average institutional entry price is about $78,000, with ETF holders also facing losses.

However, he flagged one remarkably positive data point; treasury and ETF purchases had markedly increased by 200% on the day of his posting.

“The last time it was this high, Bitcoin was at $90,000,” he stated, calling it “very good news, especially amid geopolitical tensions.”

This renewed appetite was exemplified by Strategy’s announcement of acquiring 17,994 BTC at an average price of around $71,000 each, accumulating a total of 738,731 BTC, valued at about $56 billion. Present market values suggest they could be sitting on an unrealized loss of nearly $6 billion.

Additional Insights

Further developments showcased by Strategy’s perpetual preferred stock reached a high trading volume of $299 million on March 9, which BitcoinTreasuries estimated could facilitate another purchase of 1,360 BTC.

The overall supply dynamics contextualize why institutional buying habits are noteworthy. Analyst Darkfost pointed out that Bitcoin reserves on centralized exchanges have dwindled to levels last seen in 2019.

Moreover, ETFs have reportedly absorbed around 1.3 million BTC since their launch in January 2024, alongside corporate treasury firms collectively possessing approximately 1.1 million BTC, representing nearly 5% of total supply.

Current Bitcoin Market Status

As of now, Bitcoin is trading close to $71,000, reflecting a more than 4% increase within the last day, after recovering from approximately $67,500. Over the past week, it has seen a gain of 6.4% and nearly doubled that figure over the prior two weeks. Despite this, Bitcoin remains roughly 13% lower year-on-year and around 44% off its October 2025 all-time high.