Currently, people sometimes say things like, "Bitcoin will reach about $120,000 again in 2026," "It will be $1 million in 10 years," or "I want to buy more now." Please ask these people to check the impact of unrealized losses, delisting, and bankruptcy. In 2025, Bitcoin reached about $120,000, but how much did the Bitcoin Treasury Company spend to get there? Most of them are carrying unrealized losses, putting a strain on management.
Bitcoin Treasury Company's Unrealized Losses and Management Burden
Notice of delisting and delisting from the stock market.
If the company is liquidated through bankruptcy, the shares will become worthless and the Bitcoin will be liquidated.
Unrealized losses or valuation losses, also known as Paper losses, refer to the decline in the market value of an investment or asset (such as stocks, bonds, or real estate) that has not yet been sold.
Balance Sheet: For a company, unrealized losses are recorded on the balance sheet and may affect capital, but do not directly affect cash flow.
For example: If you buy a stock for $1,000 and it falls to $700, you have an unrealized loss of $300. If you sell the stock at that price, the loss becomes a "realized" loss.
Delisting from the stock market.
If a company is unable to maintain the minimum stock price for 30 consecutive days, if it falls below the requirements, or if it fails to submit reports, it will be deemed to no longer meet the requirements for continued listing and will be sent a delisting notice. If the situation does not improve, the company will be delisted.
What happens if the stock is delisted?
Investors still own the stock but face higher risks and trading costs.
When the company was forced to delist, its stock price plummeted.
Delisting often means imminent bankruptcy.
If a company is liquidated in bankruptcy, the shares may become completely worthless.
If the company go bankrupt, will the company have to sell my Bitcoin?
Yes, Bitcoin and other cryptocurrencies are considered assets in bankruptcy proceedings and often must be liquidated (sold) unless they qualify for certain exemptions. Trustees typically require that non-exempt cryptocurrencies be transferred or sold to repay creditors and often value the assets at their market value on the filing date.
Failure to disclose cryptocurrency may result in fraud charges, dismissal of your case, and other legal penalties.
Disclaimer: Bankruptcy laws are complex and vary by jurisdiction. Please consult with a qualified bankruptcy attorney.
Bitcoin Treasury Company's Unrealized Losses and Management Burden
Strategy currently holds a total of 713,502 Bitcoins, has accumulated debt of $8.2 billion, and has a staggering unrealized loss of $6.4 billion. With its stock price slump, the company was purchasing Bitcoin once a week, but the amount of unrealized loss grew so large that it put pressure on the company's management, and the company changed its policy to purchasing Bitcoin once every three months.
Metaplanet was once insolvent in 2023, and its unrealized losses have grown to $1.4 billion this year, marking the second time. Depending on its policies, it could be delisted. It holds 35,102 Bitcoins, and if these were to be forced to be sold, the price of Bitcoin would plummet, further damaging already struggling companies, triggering a chain reaction that would lead to bankruptcy and collapse.
Why is it unlikely that the all-time high will be broken again this year or in two years?
Strategy raised funds through equity and then borrowed further against Bitcoin.
Total Purchase
Average Bitcoin purchase price: $76,047 x Total number of Bitcoins: 713,502
= 54,259,686,594 dollars 54 trillion dollars.
The company has spent USD 54 trillion dollars on Strategy alone. By continuing to purchase at high prices, prices have fallen, unrealized losses have grown, and this is putting pressure on the company's operations. Other treasury companies are in the same situation and no longer have the capacity to purchase Bitcoin. If they sell, the value will fall, so they are in a hopeless situation.
Will any new companies be willing to enter the market and take on such risks?
Even if a new entrant does, they will likely start selling once the price rises above the average purchase cost. As things stand, there is a high possibility that a chain of bankruptcies will occur first, so wouldn't it be better to refrain from purchasing for at least a year?
The four largest companies with the largest total Bitcoin holdings and the average cost of purchasing one Bitcoin
Nakamoto Inc., shown in the table below, has received a notice of delisting from Nasdaq. If it does not improve by June 2026, it will be delisted. Other small treasury companies have also received notice of delisting.
Below are some mining companies that still have a lot of coins and debt.
Public Bitcoin Treasury Company average Bitcoin purchase amount (per BTC) Current Bitcoin price: $67,000 February 12, 2026
Unrealized loss (Paper loss) = Average purchase cost per Bitcoin - Current Bitcoin price (USD 67,000) x Total Bitcoin
