Buying and buying can't even recover: MicroStrategy's holding cost trap

RugPullAlarm · 2026-02-22T20:02:05+00:00

MicroStrategy CEO Saylor's company holds Bitcoin, but the current price has fallen below their average purchase price of $76,000, indicating that even large institutions cannot prevent the market from declining. The experience in 2022 shows that institutional accumulation does not mean the market can be saved; investors should invest based on their own risk tolerance rather than expecting others to rescue the market.

RugPullAlarm

2026-02-22 20:02:05

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MicroStrategy CEO Saylor’s company has long been one of Bitcoin’s most steadfast “buy, buy, buy” believers. But reality has dealt a cold splash— the company’s average holding cost is as high as $76,000, while BTC is currently priced at $67,470 (down 1.66% from earlier), already falling below their average acquisition price. Even more painfully, few realize a key issue: this situation has happened before, and history has not been rewritten by Saylor’s steadfastness.

Historical Pattern: Lessons from 2022

The market in 2022 provided a clear answer. In May of that year, MicroStrategy’s average cost basis was about $30,700. When Bitcoin fell below this level, many investors eagerly expected it to be the bottom—after all, big institutions were “backstopping” the market.

But reality was harsher. By November of the same year, BTC continued to slide to $15,500, nearly 50% below Saylor’s cost basis. This was not a rebound but a complete collapse. It reveals a widely overlooked fact: even well-funded, bullish institutions cannot prevent continued declines in a bear market.

Why Institutional Buying Still Can’t Save the Day

Many retail investors fall into a psychological trap: believing that seeing big institutions or well-known figures continuously add to their positions means they hold the key to the market. But historical data shatters this illusion.

In 2022, Saylor couldn’t even hold the line near his average cost, with the price dropping nearly 50% below that level. If the so-called “big institution rescue” failed then, what reason is there to believe that persistent buying can change the overall downward trend of a bear market now?

Investors should not blindly buy into falling chips just because they think “someone will come to rescue.” This passive, others-driven investment logic is often the start of losses. True risk management should be based on one’s own risk tolerance and clear investment logic, not betting on some “savior” figure’s buying spree.

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