Strategy, the company formerly known as MicroStrategy, is poised for one of its toughest year-end closings to date, as Bitcoin (BTC) prices have retraced below the $90,000 mark from highs exceeding $126,000. This downturn is expected to culminate in a multibillion-dollar loss when the firm releases its fourth-quarter financial results.
Strategy’s Earnings Expected To PlungeAaron Jacob, an associate professor at Brigham Young University and a senior adviser at Taxbit, noted the significance of this shift, stating, “There was this one-time pop, but that is a different story in this quarter. It is going to be a sizable loss.”
Following a period of strong performance against benchmark stock indices, the company’s shares have fallen nearly 48% throughout 2025, down to its current trading price of $156.
Saylor’s Wealth Plummets 40%Strategy also revised its full-year earnings guidance at the beginning of last month. The company is operating under the assumption that Bitcoin will range between $85,000 and $110,000 by year-end.
Based on these projections, it anticipated operating income could range from a loss of $7 billion to a profit of $9.5 billion. However, with Bitcoin finishing the year down 6.5%, the likelihood leans toward a loss closer to the lower end of that spectrum.
Market-To-Net Asset Value Drops To Critical LevelsAs if to compound the company’s challenges, Strategy now faces a potential decline in investor confidence. The enterprise value of the firm is nearing a level that could fall below the value of its Bitcoin holdings for the first time in over two years.
Current data suggests the company’s enterprise value—including its debts and the total notional value of its perpetual preferred stock—stands at approximately $61 billion.
Featured image from DALL-E, chart from TradingView.com
