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MicroStrategy Shares Sink 17% as Bitcoin Markdowns Batter Results

Executives cite cash reserves plus unencumbered Bitcoin to argue the balance sheet can withstand further volatility.

Overview

  • The company reported a fourth‑quarter operating loss of $17.4 billion and a common‑shareholder net loss of $12.6 billion under fair‑value accounting.
  • MicroStrategy disclosed 713,502 BTC acquired at an average $76,052 per coin, now valued around $45.4–$46 billion versus a $54.26 billion cost basis.
  • Management said Bitcoin would need to fall to about $8,000 before holdings no longer cover net debt, with all BTC unencumbered and not pledged as collateral.
  • The firm holds $2.25 billion in cash covering roughly 30 months of preferred dividends, with no major debt maturities until 2027.
  • Shares fell about 17% to $107 during Thursday trading as market‑to‑NAV compressed near 0.85x and crypto‑treasury peers faced more than $25 billion in unrealized losses.