Did Saylor’s Bitcoin Bet Fail? Strategy’s $17.5 Billion Loss Numbers Stun Community

bitcoinistPublished on 2026-01-02Last updated on 2026-01-02

Abstract

Market expert Andy highlighted that Michael Saylor’s company, MicroStrategy, reported a historic GAAP loss of $17.5 billion in Q4 2025 due to Bitcoin exposure as BTC fell below $100,000. This led to a nearly 50% drop in MSTR stock in 2025. Economist Peter Schiff criticized the strategy, claiming it destroyed shareholder value and predicted worse performance in 2026 if Bitcoin declines further. However, the company had strong earnings in Q2 and Q3 2024, and MSTR remains up over 260% in five years. Expert Adam Livingston remains bullish, arguing Bitcoin hedges against inflation and could make MicroStrategy one of the world’s most valuable companies long-term.

Market expert Andy has drawn attention to a significant loss that Michael Saylor’s Strategy took in the last quarter of 2025, mainly due to its Bitcoin exposure. Meanwhile, renowned economist Peter Schiff also highlighted how the MSTR stock would have been one of the worst-performing stocks if the company were in the S&P 500.

Michael Saylor’s Strategy Posts $17.5 Billion Loss Amid Bitcoin Decline

In an X post, Andy noted that Saylor’s Strategy will report GAAP earnings for a fourth-quarter loss of $17.5 billion in 2025, which ranks as the largest quarterly loss in history. This follows Bitcoin’s decline in the fourth quarter, with the leading crypto dropping below $100,000. This caused this loss for the company, given its BTC exposure.

Strategy’s Bitcoin exposure also contributed to the MSTR stock’s massive decline last year as BTC fell. The stock recorded a 2025 loss of almost 50%, dropping to the low $150 from its high of around $450. In an X post, Schiff noted that the stock’s decline in 2025 would make it the 6th-worst-performing stock in the S&P 500 if Saylor’s company were in the index. The economist again criticized Saylor’s Bitcoin model, stating that buying BTC was basically all the company did, which he claimed has destroyed shareholder value.

However, it is worth noting that Strategy’s Bitcoin exposure contributed to the company’s strong Q2 and Q3 earnings last year. In Q2, the company recorded $14 billion in GAAP operating income, while it recorded $3.9 billion in the third quarter. Furthermore, MSTR stock has remained one of the best-performing assets since Saylor and Strategy adopted BTC in 2020. The stock is up over 260% in the last five years.

Meanwhile, Schiff stated that the MSTR stock will likely deliver even worse returns in 2026 than in 2025. He believes this would happen because of Bitcoin, which the economist expects to drop more this year than it did in 2025, putting stress on the MSTR shares in the process.

Reason To Still Be Bullish On Strategy and MSTR

Market expert Adam Livingston stated that he remains bullish on Michael Saylor’s Strategy and MSTR stock because the company is hedging against inflation with Bitcoin rather than holding cash. Livingston noted that the real risk isn’t the volatility with the MSTR stock or market movement, but inflation, which continues to erode.

The expert further declared that Bitcoin changes the risk equation, thanks to its scarcity, which helps protect companies like Strategy and individuals against ‘money printing.’ Interestingly, Livingston suggested that Saylor’s company could become one of the most valuable in the world, thanks to its BTC exposure. He noted that long-term purchasing power is the objective, and this is where he expects the company to stand out.

BTC trading at $89,098 on the 1D chart | Source: BTCUSDT on Tradingview.com

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Related Questions

QWhat was the reported GAAP loss for Michael Saylor's company in Q4 2025, and what was the primary reason for this loss?

AThe reported GAAP loss was $17.5 billion, primarily due to the company's Bitcoin exposure and the decline in Bitcoin's price below $100,000 in that quarter.

QAccording to Peter Schiff, how would MSTR stock have ranked in the S&P 500 based on its 2025 performance?

APeter Schiff stated that MSTR stock's decline in 2025 would have made it the 6th-worst-performing stock if the company were in the S&P 500 index.

QDespite the recent losses, what positive financial results did the company achieve in Q2 and Q3 of the previous year?

AIn Q2, the company recorded $14 billion in GAAP operating income, and it recorded $3.9 billion in the third quarter, largely due to its Bitcoin exposure.

QWhat is the main reason market expert Adam Livingston gives for remaining bullish on MSTR stock?

AAdam Livingston remains bullish because he believes the company is using Bitcoin as a hedge against inflation and the erosion of purchasing power caused by 'money printing', rather than holding cash.

QWhat is Peter Schiff's prediction for MSTR stock performance in 2026 compared to 2025?

APeter Schiff predicts that MSTR stock will likely deliver even worse returns in 2026 than in 2025, as he expects Bitcoin to drop even more this year, putting further stress on the shares.

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