Strategy Inc. could declare a strong fourth-quarter loss as Bitcoin collapsed 24% and MSTR stock dropped in 2025. The decrease wiped out gains in the previous quarter and further created concerns about the Bitcoin-treasury plan used by the company. The loss indicates paper declines in the value of the company’s Bitcoin holdings as it follows the new fair-value accounting laws.
MSTR Under Scrutiny as Bitcoin Price Drops
Shares of Strategy plummeted by 48% in 2025 and today it’s approximately three-quarters of its November 2024 high. The company even sold shares in December increasing cash in order to increase liquidity.
Peter Schiff is one of the analysts who have expressed his opinions regarding the stock performance of MSTR in 2026. He estimates that the stock will even perform poorly more than that of last year.
The loss also demonstrates the increased doubt concerning the continuity of the corporate Bitcoin-proxy method. Strategy positioned itself as a leverage for investors to gain exposure to Bitcoin through equity markets.
The tactic had worked well when the BTC price was on a surge but not so much when its price is declining. It was observed by Bloomberg analysts that Strategy had earlier estimated operating performance over the year to be between a loss of $7 billion and a profit of $9.5 billion.
However, this analysis is pegged upon trading Bitcoin between $85,000 and $110,000. Bitcoin closed the year around $87,600, putting it towards the lower end of the company’s forecast.
Is Confidence in Bitcoin Treasury Weakening?
The enterprise value of the company is getting close to that of its Bitcoin holdings. This is an indicator of weakening trust in the premium that investors previously paid towards the Bitcoin-supported balance-sheet model.
Meanwhile, gains and losses that are not realized should now be in reported earnings. The challenge facing Strategy also indicates larger risks for firms which imitated Strategy’s approach.
The David Beckham-linked company, Prenetics, is one of a notable example. It has now stopped its Bitcoin treasury approach, a reflection of a lack of confidence in the model.
A number of firms accumulated crypto during the previous bull market. But a good number of them are now facing similar as losses on paper as the price of digital assets falls. The price decline in Q4 2025 revealed how much earnings can change during periods of market decline.