MSTR Stock Plunges After Strategy Takes $17.4B Bitcoin Hit in Q4

MicroStrategy's stock just got a reality check—and it's a big one. The corporate Bitcoin behemoth's shares are tumbling after revealing a staggering quarterly loss tied directly to its crypto holdings.

The Numbers Don't Lie

That $17.4 billion impairment charge isn't just a paper loss; it's a direct reflection of Bitcoin's volatile price action during the quarter. While the accounting rules force this recognition, long-term holders know the drill: you only realize the loss if you sell. MicroStrategy hasn't flinched from its accumulation strategy, treating dips as buying opportunities rather than existential threats.

Strategy Under the Microscope

Critics are having a field day, calling it a reckless corporate gamble. Proponents see it as visionary treasury management—converting depreciating dollars into a hard-capped digital asset. The market's knee-jerk reaction focuses on the short-term P&L pain, often ignoring the underlying asset's potential for asymmetric upside. It's the classic finance short-termism versus long-term conviction play.

Bigger Picture, Bolder Bet

This isn't a story about a single bad quarter. It's about a publicly-traded company making an unprecedented, multi-billion dollar bet on an emerging asset class. The volatility is a feature, not a bug, for those with strong hands. While traditional analysts clutch their pearls over GAAP earnings, the real story is the growing corporate adoption of Bitcoin as a primary reserve asset—a trend MicroStrategy is leading, stomach-churning quarters and all.

One quarter's accounting headache doesn't invalidate a multi-year strategy. In the race to future-proof corporate balance sheets, sometimes you have to endure a $17.4 billion bump in the road. The street might panic, but the Bitcoin faithful are just watching the accumulation continue. After all, on Wall Street, they've never been great at pricing disruption—or conviction.

TLDR

• Strategy reported a $17.4 billion unrealized loss on its Bitcoin holdings in the fourth quarter of 2025.
• Bitcoin ended 2025 near $87,000 after reaching an all-time high of around $126,000 in October.
• For the full year, Strategy posted a $5.4 billion unrealized loss with a $1.5 billion deferred tax benefit.
• The company acquired 1,286 Bitcoin between December 29, 2025, and January 4, 2026.
• Strategy now holds a total of 673,783 Bitcoin with a current market value of approximately $62 billion.

Strategy, the enterprise software firm and largest corporate holder of Bitcoin, has disclosed a $17.4 billion unrealized loss for Q4 2025 as Bitcoin prices dropped sharply during the quarter, though the company continued to strengthen its crypto holdings and USD reserves.

Bitcoin Decline Drives Q4 Losses for Strategy

Bitcoin price dropped by around 6% over 2025 and ended the year NEAR $87,000 after peaking at $126,000 in October. This late-year decline led Strategy to record a $17.4 billion unrealized loss on digital assets in the fourth quarter alone. For the full year ending December 31, 2025, the company reported a $5.4 billion unrealized loss with a $1.5 billion deferred tax benefit.

Despite the volatility, bitcoin recovered slightly into early January, trading at $92,575—up 6% over the past seven days, per CoinGecko. The resurgence occurred during heightened geopolitical tensions between the United States and Venezuela. However, Strategy’s overall crypto position still reflected major losses on paper due to year-end pricing.

During the final days of 2025 and into the start of 2026, Strategy continued to buy more Bitcoin. Between December 29 and January 4, it acquired 1,286 BTC. These purchases brought its total holdings to 673,783 BTC.

MSTR Stock Slides, Strategy Buys More Bitcoin

Shares of MSTR stock have declined more than 45% in the past year as Bitcoin’s price weakened in the second half of 2025. The stock is now trading near the lower end of its 52-week range and below its 200-day simple moving average. Still, the company maintained its crypto-focused approach, even as market conditions fluctuated.

Strategy Inc, MSTR

From January 1 to 4, 2026, Strategy purchased another 1,283 BTC for $116.0 million at an average price of $90,391. The firm confirmed that its average purchase price per bitcoin as of January 4, 2026, stood at around $50,500. Strategy stated that these purchases reflected ongoing confidence in Bitcoin as a primary asset.

The company now holds Bitcoin worth roughly $62 billion at current prices. It reported a cumulative acquisition cost of about $75.03 billion for its total BTC holdings. This continues to reflect a paper loss based on market value at the time of reporting.

USD Reserve Strengthens as Metaplanet Expands Exposure

Strategy also disclosed a $2.25 billion US dollar reserve as of early January 2026, up from $2.2 billion in late 2025. The reserve supports preferred stock dividends and interest payments on outstanding debt. The company emphasized that use of the reserve remains at management’s discretion.

Meanwhile, Japan-based Metaplanet pursued a similar Bitcoin-first treasury strategy throughout 2025. After pivoting in 2024, Metaplanet built its BTC holdings to 30,823 by December 2025. This made it the largest public Bitcoin holder in Asia.

Metaplanet’s aggressive BTC strategy placed it among the top 10 public Bitcoin treasuries worldwide. The company moved quickly from limited exposure to substantial holdings within one year. However, the rapid accumulation also increased its exposure to short-term market shifts.