Michael Saylor's Strategy (MSTR), formerly MicroStrategy, is a business software company turned Bitcoin treasury powerhouse. Yesterday, Strategy reported an unrealized loss of $17.44 billion in Q4 of 2025, as Bitcoin (BTCUSD) prices declined by 25% in the December quarter. The loss marks a sharp reversal from the $3.9 billion unrealized gain Strategy reported in Q3. It highlights the extreme volatility inherent in the company's Bitcoin-centric strategy.
Under new accounting standards adopted in Q1 of 2025, Strategy must mark its Bitcoin holdings to fair value each quarter. This creates massive swings in reported earnings that track the cryptocurrency's price movements.
