DWF Labs Founder Warns Strategy and BitMine Could Trigger Crypto’s Biggest-Ever Liquidation Cascade

Strategy, formerly MicroStrategy, and BitMine hold large amounts of Bitcoin and other crypto assets on their corporate balance sheets. Falling prices would deepen unrealized losses and increase financing pressure. Given the size of their holdings, any crypto sales to cover interest payments, top up collateral or raise cash could quickly strain market liquidity.

As of July 20, 2026, DWF Labs co-founder Andrei Grachev warned that Strategy and BitMine had combined unrealized losses of more than $22 billion on their crypto holdings. If prices continue to fall, forced selling could drive them still lower and trigger further liquidations, creating a cascading vicious cycle. The risk is compounded because some staked assets remain locked and cannot readily be converted into cash.