"MSTR shares have crashed 27.5% year-to-date and 30% over the past month. The culprit: Bitcoin's decline from $87,498 on January 1 to $72,725 on February 5, a 17% drop that hammered the company's 640,808 BTC holdings valued at $70.9 billion. The stock now trades at $110.11, far below its 52-week high of $457.22. Multiple class action lawsuits allege the company overstated the profitability of its Bitcoin strategy and understated volatility risks, adding legal pressure to market headwinds."
"I'll be watching how management frames the impact of fair value accounting adopted in 2025. Last quarter's guidance projected net income ranging from -$5.5 billion to +$6.3 billion depending on Bitcoin prices between $85,000 and $110,000. With Bitcoin now at $72,725, expect substantial unrealized losses. Reddit sentiment has turned very bearish, with retail investors fixated on liquidation thresholds. One popular thread warned Saylor is "3% away from negative Bitcoin position" based on the company's $74,032 per BTC cost basis."
Strategy Inc reports fourth-quarter 2025 results on February 3, 2026, amid a steep share-price decline tied to Bitcoin losses. Bitcoin fell from $87,498 to $72,725, driving mark-to-market hits on 640,808 BTC holdings valued at $70.9 billion and pushing the stock to $110.11 from a $457.22 52-week high. Analysts forecast negative earnings after prior guidance ranged from -$5.5 billion to +$6.3 billion depending on Bitcoin prices. Multiple class action lawsuits allege misstatements about profitability and volatility. The company established a $1.44 billion reserve while continuing to acquire Bitcoin, fueling investor scrutiny.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]