MicroStrategy reported a massive $17.4 billion operating loss for Q4 2025, driven by unrealized losses on its Bitcoin holdings during a market downturn. The firm’s large BTC bet has seen its paper value shrink by approximately $8 billion, while its stock, MSTR, has plunged 80% from its 2025 peak, causing significant paper losses for several U.S. pension funds.
MicroStrategy faces mounting pressure as its substantial Bitcoin investment incurs major paper losses during a broad crypto market decline. The company reported an operating loss of $17.4 billion for the fourth quarter of 2025, according to its earnings call.
The entire loss was primarily an unrealized loss on its BTC holdings attributed to new reporting guidance. “Operating loss for the fourth quarter of 2025 includes an unrealized loss on the Company’s digital assets of $17.4 billion,” the report stated.
The firm holds 713,502 Bitcoin acquired at an average price of around $76,000 per coin. That stash, now worth approximately $46.2 billion, represents a nearly 15% decline from its cost basis.
MicroStrategy’s common stock, MSTR, has also suffered dramatically, dropping 17% in a single day. The stock has fallen 80% from its November 2025 peak, returning to its 2024 trading range between $100 and $180.
Eleven U.S. pension funds that bought about 1.8 million MSTR shares are facing a combined paper loss of roughly $330 million. Data shows their investment has shrunk from $577 million to about $240 million.
Long-time Bitcoin critic Peter Schiff slammed the company as a “fraud” and questioned its capital-raising model. Schiff has repeatedly criticized MicroStrategy and executive Michael Saylor during market downturns.
