Strategy Faces Q4 Loss as Bitcoin Slump Hits MSTR Stock

Strategy Inc. is likely to report a big fourth-quarter loss after Bitcoin fell about 24% in late 2025, dragging down MSTR shares and raising doubts about its Bitcoin-treasury strategy.

The price drop reduced the value of the company’s Bitcoin holdings and pushed its stock lower, wiping out gains made earlier in the year.

New accounting rules now force companies to record unrealized Bitcoin gains and losses in earnings, making Strategy’s results more volatile. MSTR shares fell about 49% in 2025 and are now far below their November 2024 peak.

In December, the company sold more shares to raise cash and improve liquidity. Critics, including Bitcoin skeptic Peter Schiff, believe the stock could perform even worse in 2026.

The loss has raised fresh doubts about Strategy’s Bitcoin-treasury strategy. The company positioned itself as a way for investors to get Bitcoin exposure through stocks. This worked well when Bitcoin prices were rising, but it has struggled during the downturn.

Strategy had earlier projected a very wide performance range, from a $7 billion loss to a $9.5 billion profit, based on Bitcoin trading between $85,000 and $110,000. Bitcoin ended the year near $87,600, which puts results near the weaker end of that forecast.

Confidence in the Bitcoin-treasury model is also fading across the market. Strategy’s overall company value is now close to the value of its Bitcoin holdings, showing investors are no longer paying a big premium for the strategy. Other firms that copied this approach during the bull market are facing similar pressure.

Some companies have already stepped back. Prenetics, a firm linked to David Beckham, has stopped its Bitcoin-treasury plan. The late-2025 price drop showed how quickly Bitcoin gains can turn into losses, highlighting the risks for companies holding large amounts of crypto.