Microstrategy Crypto: MSTR Shares Plummet 17% After Bitcoin Crash!

Jakarta, Pintu News – Microstrategy, now Strategy, is back in the spotlight in the financial markets after its shares (MSTR) plummeted by 17% in a single trading day. The sharp drop was triggered by the collapse in the price of Bitcoin, the main crypto asset that is the pillar of the company’s investment strategy.

In its fourth quarter 2025 financial report, Microstrategy reported a net loss of $12.4 billion-a figure that surprised the market and reinforced concerns over the company’s reliance on Bitcoin volatility.

With BTC prices continuing to slide, investors are now questioning how resilient the company’s “Bitcoin maximalist” strategy is amidst global crypto market pressures.

Strategy records huge losses after Bitcoin plummets

Strategy recorded an astounding net loss of $12.4 billion in the fourth quarter of 2025. This huge loss came after the price of Bitcoin (BTC) plummeted from a peak of $126,000 in early October to around $88,500 on December 31.

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The company’s misery continues into 2025. The price of Bitcoin has dropped another 30% since the beginning of the year, to $64,500-far below Strategy’s average Bitcoin purchase price of $76,052.

Strategy shares closed down 17% on Thursday at $107. This drop came as Bitcoin hit a low of $62,500 during the trading session. The stock recovered slightly in after-hours trading.

Currently, the company holds 713,502 Bitcoins that are worth about $46 billion based on current prices. When compared to its average purchase price, this means there is a loss on paper of 17.5% of its total holdings.

Despite the huge Bitcoin losses, Strategy was still able to record revenue growth from its core intelligence business of 1.9% on an annualized basis to $123 million in the fourth quarter. However, this figure is still very small when compared to the huge losses incurred by their Bitcoin investments.

Management Remains Calm

CFO Andrew Kang struck an optimistic tone in the financial report. He said that Strategy’s current capital structure is “stronger and more resilient than ever.”

Kang highlighted the company’s Bitcoin holdings which he called a “digital fortress.” He also emphasized the company’s shift to the concept of “Digital Credit” which aligns with its long-term strategy towards Bitcoin.

CEO Phong Le was even more emphatic on the earnings call. “I’m not worried, we’re not worried, and no, we’re not having problems,” he told investors.

Le noted that Strategy’s enterprise value still exceeds its Bitcoin reserves of $45 billion. He also emphasized that the $8.2 billion convertible debt only reflects a net leverage ratio of 13%.

This is below the average debt ratio of companies in the S&P 500 index. Le used this comparison to allay concerns about the company’s debt burden.

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Cash Position as a Buffer

Strategy ended the fourth quarter with $2.25 billion in cash. This was enough to pay 30 months’ worth of preferred stock dividends and interest on debt.

The company also has no major debt maturing before 2027. This means that Strategy is not under pressure to sell Bitcoin to meet short-term obligations.

This breathing space is particularly important, given that the price of Bitcoin is still falling. Companies aren’t forced to sell assets at low prices just to repay short-term debt.

Large cash reserves and distant debt maturities give Strategy time to get through the current rough patch. Executive Chairman Michael Saylor has also repeatedly stated that he plans to hold onto Bitcoin for the long term.

Strategy itself continues to aggressively add to its Bitcoin holdings. After the fourth quarter ended, the company bought several billion dollars worth of additional Bitcoin.

Bitcoin’s average purchase price of $76,052 includes this latest purchase. However, it is now about $11,500 higher than the current market price of $64,500.

Investors will be watching the 5pm ET earnings call closely. They want to hear Saylor and the management team’s plans amid the current market conditions and Bitcoin’s loss-making ownership position.

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This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities are subject to high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying and selling Bitcoin and other crypto asset investments are the responsibility of the reader.

Reference:

• CoinCentral. Strategy (MSTR) Stock Falls 17% as Bitcoin Crash Drives $12.4 Billion Q4 Loss. Accessed on February 6, 2026