Bitcoin’s correction continues to dominate headlines. Strategy is now sitting on an estimated $11 billion paper loss, while Michael Saylor insists the move is driven by capital rotation rather than a change in Bitcoin’s fundamentals.
At the same time, Coinbase and Better have funded the first Fannie Mae-backed mortgage using bitcoin as collateral, marking another step toward mainstream financial adoption. Meanwhile, a rare Casascius physical bitcoin containing 25 BTC was redeemed after 12 years, unlocking nearly $1.8 million and removing another piece of early Bitcoin history from circulation.
Strategy Faces $11 Billion Bitcoin Paper Loss as Saylor Remains Bullish
Strategy’s Bitcoin treasury has fallen into deep unrealized losses as Bitcoin trades below the company’s average purchase price. The firm holds 843,706 BTC acquired at an average cost of $75,699 per coin, leaving it with an estimated paper loss of $11.2 billion at current market prices.
The decline has renewed debate around Strategy’s Bitcoin-focused treasury model. The company’s preferred stock, STRC, has also slipped below its target value, raising questions about future fundraising efforts used to finance additional Bitcoin purchases.
Executive Chairman Michael Saylor remains unfazed. He argues that recent weakness is the result of capital flowing into AI infrastructure and continued outflows from spot Bitcoin ETFs, describing the move as a temporary capital rotation rather than a sign of weakness in Bitcoin itself.
Critics, including longtime Bitcoin skeptic Peter Schiff, warn that prolonged pressure could create financial challenges for the company. However, analysts at Standard Chartered believe the market may be nearing a bottom, with Strategy’s next Bitcoin purchase likely to be watched closely by investors.
Coinbase and Better Close First Bitcoin-Backed Mortgage
Coinbase and Better have funded what they describe as the first Fannie Mae-backed mortgage that allows borrowers to use Bitcoin as collateral. The product enables homebuyers in the USA to finance a down payment without selling their crypto holdings, preserving potential upside while still qualifying for a traditional mortgage.
The first loan was issued to a Michigan couple who used Bitcoin as collateral instead of liquidating their digital assets. The structure combines a standard Fannie Mae mortgage with a separate crypto-backed loan used to cover the down payment, resulting in a single monthly payment for borrowers.
Initially, the program supports Bitcoin and the USDC stablecoin. Borrowers must overcollateralize the loan, with Bitcoin-backed loans requiring roughly $2.50 in BTC for every $1 borrowed. The pledged assets remain in custody through Coinbase for the duration of the mortgage.
Demand appears strong ahead of the nationwide rollout planned for this summer. According to the companies, the waiting list already represents approximately $250 million in potential loan volume. Coinbase and Better argue that the product could help crypto holders enter the housing market without triggering taxable asset sales or giving up long-term exposure to digital assets.
The launch marks another step in the integration of crypto and traditional finance, bringing digital assets into one of the largest consumer lending markets in the United States.
Rare Physical Bitcoin Coin Redeemed After 12 Years, Unlocking $1.78 Million in BTC
A rare physical Bitcoin from the legendary Casascius series has been redeemed after more than a decade, releasing 25 BTC worth approximately $1.78 million at current market prices. The coin, part of a limited batch minted between 2011 and 2013, had remained untouched until its owner peeled off the tamper-evident hologram and moved the funds on-chain.
Casascius coins were created by software engineer Mike Caldwell and became some of the most iconic collectibles in Bitcoin history. Each coin contained a private key hidden beneath a hologram, allowing holders to access the embedded bitcoin at any time.
By redeeming the coin, the owner effectively destroyed part of its collectible value. Intact Casascius coins often trade at a premium above the value of the bitcoin they contain due to their rarity and historical significance within the crypto industry.
The event comes amid a broader trend of long-dormant Bitcoin holdings becoming active again. Earlier this week, a wallet dating back to 2011 also moved 35 BTC after remaining untouched for roughly 15 years.
Despite thousands of Casascius coins still remaining unredeemed, each redemption becomes increasingly notable as these early pieces of Bitcoin history grow scarcer. Some of the rarest examples, including 1,000 BTC Casascius coins, remain intact and today represent tens of millions of dollars in embedded BTC.