Michael Saylor’s Bitcoin bet is facing heat amid the broader crypto rout. According to the earnings call held on the 5 February, the firm reported an operating loss of $17.4 billion in Q4 2025.
Due to new reporting guidance, the entire loss was primarily an unrealized loss on its BTC holdings as the crypto rout intensified in late 2025 following October’s crash.
Part of the report read,
“Operating loss for the fourth quarter of 2025 includes an unrealized loss on the Company’s digital assets of $17.4 billion. This is the fourth quarterly reporting period in which we have applied fair value accounting.”
When adjusted for other incomes and expenses, the net loss for Q4 came down to $12.4 billion.
Bitcoin bet weighs on Strategy
The pioneer of corporate BTC treasury accumulated 713,502 coins at a cost of over $54 billion with an average price of $76k per BTC.
Although this isn’t the firm’s bear market, the bet has recorded massive paper losses as BTC plunged below $65k on the charts. At press time, Strategy’s stash was worth $46.2 billion – Nearly 15% down after an $8 billion wipeout.
The mNAV, or relative valuation metric, between crypto holdings and the enterprise, fell further to 0.77x too, underscoring the broader bearish market sentiment.
That’s not all either as its common stock, MSTR, has also not been spared from the market carnage.
MSTR extends losses to 80%
On Thursday, MSTR posted a 17% price decline after the earnings call and BTC’s sharp drop to $60k.
This brought its losses, since the 2025 high of $453, to 76%. When zoomed from the November 2025 peak of $543, the overall losses totalled 80%.
U.S pension funds have emerged as the hardest hit by MSTR’s meltdown. In fact, reports indicated that 11 US pension funds may be staring down a paper loss of $330 million from holding the stock.
These funds bought about 1.8 million MSTR shares at a cost of $577 million. However, they have now shrunk to $240 million as the stock dropped lower. At press time, MSTR was back to its 2024 price range of $100-$180. However, it remains to be seen whether the support will hold against bears.
Meanwhile, Peter Schiff, a long-time BTC and Saylor critic, slammed the firm as a “fraud” and a “ponzi scheme.” He questioned Strategy’s capital-raising model for its BTC buys.
In the past too, Schiff has taken advantage of BTC market routs to intensify attacks against the firm and Saylor.
Final Thoughts
- Strategy reported a $17.4 billion loss in Q4, mainly due to a decline in BTC’s price which affected its unrealized PnL (profit and loss).
- Deepening market rout extended MSTR losses to 80% after dropping to the 2024 price range of $100-$180.
