MSTR Stock Price Crashes 17% as Strategy Reports $12.4B Loss in Q4 Earnings

MSTR stock price of Bitcoin treasury firm Strategy (formerly MicroStrategy) extends its crash beyond 17% on Thursday following the release of its Q4 2025 earnings results. The company reported a massive $12.4 billion net loss driven primarily by sharp declines in Bitcoin price.

MSTR Stock Price Plunges 17%

Strategy (NASDAQ: MSTR) stock began falling by more 10% before the Q4 2025 earnings release. MSTR stock price extended the crash by another 17% to close at $106.99 on February 5 as Bitcoin tumbled more than 14% to below $65,000.

This marks one of its deepest single-day drops in years, pushing it to a two-year low. The intraday high and low were $122 and $104.16, as per Google Finance data. Trading volume was 56 million, significantly above the average of 21 million.

After market hours, the MSTR stock price fell another 0.97% to $105.95. The stock is down 31.92% year-to-date (YTD) and 68.22% over the past year as a result of the massive crypto market crash amid the bear market.

Strategy’s (formerly MicroStrategy) enterprise value dropped 12.82% to $49.95 billion. Canaccord Genuity maintained its buy rating on Strategy but sharply cut its MSTR stock price target from $474 to $185 per share in the latest forecast.

Strategy Reports Massive Net Loss

MicroStrategy reported a net loss of $12.4 billion, or $42.93 per diluted common share, in Q4 2025 earnings results, as compared to a $670.8 million loss reported in the same quarter a year earlier.

The company reported an operating loss of $17.4 billion due to an unrealized $17.4 billion loss on its digital assets under fair value accounting. Total revenues increased 1.9% to $123.0 million year-over-year.

“2025 marked a landmark year for corporate Bitcoin adoption, supported by the implementation of fair value accounting for bitcoin, clarity that unrealized gains on bitcoin are not taxed under CAMT, and the relaunch of our S&P credit rating,” said chief financial officer Andrew Kang. “Strategy’s capital structure is stronger and more resilient today than ever before,” he added.

Strategy holds 713,502 BTC, acquired at a total cost of $54.26 billion. With Bitcoin trading well below this average during the quarter’s end and into early 2026, the holdings are worth $45.8 billion. It leaves Strategy with an unrealized loss of nearly $8.50 billion.

As CoinGape reported earlier, MSTR stock price is expected to see more selling pressure in the upcoming trading session amid the sharp decline in Bitcoin price. Peter Schiff warned Strategy’s Bitcoin losses could deepen over the next five years.

The company has continued its aggressive Bitcoin accumulation strategy, adding 41,002 BTC in January 2026 alone. Executive chairman Michael Saylor urged investors to “hold on” claiming the downturn is temporary and emphasizing Bitcoin’s long-term potential.