What was MicroStrategy's fourth-quarter financial performance?

MicroStrategy reported a widened fourth-quarter loss of $12.4 billion, or $42.93 per share, compared to a $670.8 million loss in the prior year.

Why did MicroStrategy's losses increase?

The company's losses widened due to the turbulent cryptocurrency market, which led to recorded losses on its substantial bitcoin holdings.

How has MicroStrategy's stock performed recently?

MicroStrategy's stock has fallen nearly 30% this year, reflecting the volatility and downturn in the cryptocurrency market and its significant bitcoin exposure.

Home / Business and Economy / MicroStrategy Suffers Major Loss Amid Crypto Slump

MicroStrategy Suffers Major Loss Amid Crypto Slump

6 Feb

•

Summary

Company reported a wider Q4 loss of $12.4 billion.
Bitcoin holdings saw significant value decrease.
Company shares dropped nearly 30% this year.

MicroStrategy Suffers Major Loss Amid Crypto Slump

MicroStrategy recorded a substantial widening of its fourth-quarter loss, reporting $12.4 billion, or $42.93 per share, for the period ending December 31. This compares unfavorably to a $670.8 million, or $3.03 per share, loss in the same period a year earlier. The company, known for its significant holdings of bitcoin, experienced losses on its digital assets due to the turbulent cryptocurrency market. As of February 1, MicroStrategy held 713,502 bitcoins, acquired at a total cost of $54.26 billion. The company's stock has reflected these pressures, falling approximately 30% year-to-date, a steeper decline than bitcoin's own price drops. This performance underscores the leveraged exposure the stock offers to the cryptocurrency's volatility. Earlier in the year, MicroStrategy had revised its 2025 earnings forecast downwards, anticipating $150,000 per bitcoin by year-end. However, market shifts and institutional outflows from spot bitcoin ETFs have contributed to a significant downturn since bitcoin's October peak.