Bitcoin drops, MicroStrategy faces a massive loss of $17.4 billion

As BTC experienced a significant decline at the end of last year, the pioneer in Bitcoin reserve strategy, MicroStrategy (Strategy (), reported an unrealized loss of $17.44 billion in Q4. However, Strategy ) remains committed to the “Hodler” spirit, issuing common stock MSTR again to buy Bitcoin, increasing its total holdings to 673,783 BTC.

Bitcoin price drops, Strategy’s Q4 financial report faces a massive unrealized loss of $17.44 billion

Affected by Bitcoin’s retreat from its high point, Strategy disclosed an unrealized digital asset loss of $17.44 billion in its Q4 2025 financial report. As of the end of 2025, its digital assets had a book value of approximately $58.85 billion.

Although the accounting standards make the figures appear startling, the company also gained $5.01 billion in deferred tax benefits, partially offsetting the impact on shareholders’ equity. The full-year net loss was controlled at $5.4 billion.

Upholding the “Hodler” spirit, Strategy buys an additional 1,287 BTC

Despite market volatility, Strategy continues to adhere to the “Hodler” philosophy.

Strategy raised $116 million through the issuance of common stock MSTR and bought 1,287 BTC last week, with an average cost of $90,391. As of January 5, 2026, Strategy holds a total of 673,783 BTC, with a total cost of $50.55 billion and an average cost of $75,026 per Bitcoin.

Shift in financing tools towards dollar reserve system

To address bear market risks and ease concerns over shareholder dilution, Strategy’s financial approach has diversified from solely issuing convertible bonds to launching multiple “perpetual preferred stocks” (such as STRF, STRK, etc.). Additionally, as of January 4, 2026, the company has established a $2.25 billion USD reserve fund dedicated to paying preferred stock dividends and debt interest. This approach aims to avoid forced liquidation of Bitcoin assets during market downturns, enhancing financial flexibility.

Potential risks of mNAV premium convergence and MSCI index adjustments

Strategy’s enterprise value is about to fall below the value of its Bitcoin reserves (mNAV currently at 1.04)), highlighting growing concerns about the sustainability of its corporate financial model. Data compiled by Strategy shows that the company’s enterprise value (, including debt and the total nominal value of its perpetual preferred stocks ), is approximately $65.4 billion.

The stock price has plummeted nearly 70% from its all-time high in November 2024. Previously, investors were willing to pay a premium supporting its Bitcoin purchase strategy. Now, with shareholders facing massive losses this quarter, that advantage seems to have almost disappeared.

Meanwhile, the market is awaiting the decision from global index provider MSCI on whether to exclude Strategy and other DAT companies from the index on January 15.

Yesterday, MSTR’s stock price rose nearly 5% along with Bitcoin, reaching close to $94K, closing at $164.72.

This article, “Bitcoin declines, MicroStrategy faces a $17.4 billion loss,” was first published on Chain News ABMedia.