MicroStrategy Set to Post Multibillion-Dollar Q4 Loss After 24% Bitcoin Slump
MicroStrategy said it will record a multibillion-dollar loss for Q4 after a roughly 24% drop in Bitcoin over the period forced sizeable mark-to-market writedowns on its crypto holdings. The hit underscores how volatile price swings translate directly into earnings swings for public companies that hold large, unhedged crypto positions. Michael Saylor, who has repeatedly framed Bitcoin’s volatility as “a feature, not a bug,” has pushed the company to remain an aggressive corporate holder.
The announced loss is likely to weigh on investor sentiment and could put pressure on MicroStrategy’s stock in the near term, highlighting trade-offs between long-term crypto conviction and short-term financial reporting. For other firms watching from the sidelines, the episode is a reminder that large-scale Bitcoin exposure can create sharp quarterly earnings volatility even without any change to the underlying business operations.