Strategy (MSTR) Plunges on $12.4B Bitcoin Loss

MicroStrategy (MSTR) experienced a significant downturn following its Q4 2025 earnings report, revealing a $12.4 billion net loss primarily due to a substantial decline in Bitcoin's price, falling to around $64,000. This resulted in roughly $8.5 to $12.4 billion in unrealized losses on its 713,502 BTC holdings, causing MSTR stock to plummet over 17% and hit an 18-month low. Despite these losses, company executives, including Michael Saylor, maintain a long-term bullish outlook on Bitcoin and emphasize a strong cash reserve and capital structure. However, analysts have significantly lowered price targets for MSTR, and concerns are growing regarding the company’s leveraged position and ability to raise further capital. Some, like Michael Burry, warn of potential cascading losses. Notably, Strategy’s debt coverage relies on Bitcoin remaining above $8,000, a level it hasn’t reached in years. While the company continues to raise capital and expand its Bitcoin-backed credit program, prediction markets suggest a rising probability of a potential Bitcoin sale this year.