Strategy Holding Cost $76,052, why does the CEO loudly proclaim steadfast holding despite being in unrealized loss?

February 6, 2026, Bitcoin price briefly fell below the $60,000 threshold, and market sentiment was filled with unease. During this volatility, well-known investment firm Strategy became a focal point due to its high average holding cost of $76,052.

Faced with significant unrealized losses, Strategy CEO Phong Le issued a clear directive during the latest earnings call: they will not change their current strategy unless Bitcoin drops to $8,000 and remains at that level for 5-6 years.

Market Volatility

In early February 2026, the cryptocurrency market experienced intense fluctuations. Bitcoin’s price rapidly retreated from previous highs, briefly falling below the key support level of $65,000 on February 6, down more than 20% from the all-time high set in 2025.

This market environment posed a severe test for all investors, especially institutions holding high-cost positions. On that day, approximately 33,000 Bitcoin options expired, with the largest pain point at $80,000, representing a notional value of about $2.1 billion.

The sharp market swings caused implied volatility at major maturities to rise significantly, with multiple short-term at-the-money implied volatilities exceeding 110%, reflecting extreme uncertainty among investors about future price movements.

Position Analysis

Amid this market turbulence, Strategy’s investment positions drew particular attention. Public data shows that the firm’s average Bitcoin holding cost is as high as $76,052, well above the current market price.

When the market falls into panic, Phong Le made a striking statement during the February 6 earnings call: “We will not change our strategy unless Bitcoin drops to $8,000 and stays there for 5-6 years.”

This statement immediately sparked widespread discussion in the crypto community. At the current price, $8,000 implies Bitcoin would need to decline by about 87%, and maintaining that level for 5-6 years would be an extreme test of patience.

Logical Interpretation

Why does Strategy choose to hold firm despite substantial unrealized losses? Phong Le’s remarks reflect a different investment logic and time horizon compared to retail investors.

Long-term Perspective: Institutional investors typically adopt a 5-10 year investment cycle, contrasting sharply with retail investors who focus on daily or weekly charts. When retail investors panic over short-term volatility, institutions pay more attention to long-term trends and fundamentals.

Cost Averaging Strategy: On professional trading platforms like Gate, institutional investors can manage risk using structured products and dollar-cost averaging tools. For example, Gate’s Auto-Invest feature allows users to automatically allocate funds according to a preset plan, effectively smoothing out market volatility impacts.

Diversified Asset Allocation: Professional institutions usually do not concentrate all their funds in a single asset. On platforms like Gate, users can invest in over 4,300 cryptocurrencies and also trade traditional assets like gold and silver.

Platform Tools

In highly volatile markets, Gate offers a suite of professional tools to help investors manage risk and optimize strategies. These tools are crucial for implementing long-term investment approaches similar to Strategy’s.

Hedging Mechanisms: Gate’s contracts support trading in various traditional financial assets 24/7 with up to 500x leverage. Investors can use these tools to establish hedging positions, reducing downside risk.

Diverse Income Products: Gate’s HODL & Earn product line includes structured products, simple yield products, and dual-currency offerings, providing long-term holders with additional income streams. Even during sideways or declining markets, these products can generate some returns.

Advanced Analytical Tools: Gate’s big data section offers comprehensive statistical insights, from large transfer distributions to trading flow analysis, helping investors make more informed decisions. These tools are especially valuable for institutional investors, supporting their long-term investment decisions with data.

Strategic Insights

Phong Le’s comments not only reflect Strategy’s investment philosophy but also offer valuable lessons for ordinary investors. In the face of market volatility, individual investors can adopt institutional thinking.

Establish a Clear Investment Framework: On professional platforms like Gate, investors can leverage extensive educational resources and analytical tools to build their own investment frameworks. Clarify entry points, stop-loss levels, and target prices to avoid emotional trading.

Leverage Platform Advantages: As a leading global cryptocurrency exchange with over $5.6 billion in 24-hour trading volume, Gate provides ample liquidity. Its reserve coverage rate exceeding 125% also offers additional security.

Focus on Long-term Trends: Cryptocurrency markets exhibit significant cyclical characteristics. The ability of institutions to withstand short-term fluctuations stems from their focus on long-term returns spanning multiple market cycles.

Prioritize Risk Management: On the Gate platform, investors can utilize various risk management tools, including stop-loss orders, leverage controls, and asset diversification. Even those confident in long-term prospects should prepare for short-term volatility.

Summary

On February 6, Gate’s hot wallet address transferred approximately $7.1446 million worth of XAUt, while XAUt’s 24-hour trading volume on Gate reached $54.18 million.

As Bitcoin fluctuated around $64,865, the market’s fear and greed index indicated “extreme fear.” Meanwhile, Bitcoin spot prices on Gate showed strong resilience at around $66,134.

No matter how the market moves, there will always be institutions staying alert and seeking opportunities on professional platforms like Gate. The strategic allocation of traditional assets like gold and silver alongside cryptocurrencies is becoming a new value anchor amid volatility.