In an unpredictable financial landscape, Strategy, previously known as MicroStrategy, finds itself facing a year-end close unlike any other. With Bitcoin (BTC) prices plummeting below $90,000 after once soaring past $126,000, the company is bracing for a potential multibillion-dollar financial hit in its fourth-quarter report.

Financial Outlook for Strategy

Industry analyses suggest that Strategy may report staggering losses that starkly contrast the impressive $2.8 billion profit from the prior year’s third quarter, as indicated by Forbes.

Financial expert and academic, Jessica Wang from Stanford University, emphasized the importance of this market shift, stating, “What we see now is a significant move from a one-time gain to an ongoing struggle. This quarter will not reflect the same successes.”

The anticipated losses are attributed to an accounting shift earlier in the year that altered how the company values its cryptocurrency holdings, demanding that assets be assessed at real-time market prices. This adjustment has become critical as Bitcoin experienced a decline of 24% in the last quarter.

After a strong performance compared to stock market indices, the company’s stock has seen a steep decline of nearly 48% throughout 2025, pushing shares down to around $156.

Impact on Leadership Wealth

In light of these developments, there are increasing concerns about the possibility that Strategy might need to liquidate some of its Bitcoin assets to manage escalating obligations such as dividends and interest payments. In response to these worries, the company created a cash reserve on December 1 by offloading some common shares.

In early December, Strategy adjusted its earnings forecast for the entire year, anticipating Bitcoin fluctuations within the $85,000 to $110,000 range. 

With these benchmarks, expectations for operating income have been set between a loss of $7 billion and a profit of $9.5 billion. Yet, with Bitcoin closing the year down by 6.5%, the more probable outcome is closer to the lower end of that projection.

Bloomberg’s Billionaires Index reveals that co-founder Michael Saylor has experienced a notable decline in his personal wealth, with a drop of about 40%, leaving him with a net worth around $3.8 billion amidst this volatile market.

Market Value Concerns

The company’s current situation is exacerbated by a growing risk of diminishing investor confidence. Strategy’s overall enterprise value is on track to potentially dip below the worth of its Bitcoin assets for the first time in two years.

Recent evaluations put the company’s enterprise value, incorporating total debts along with the notional value of preferred stock, at roughly $61 billion.

With shares down nearly 70% from the peak in November 2024, the company’s market-to-net asset value (mNAV)—which reflects the relationship between market capitalization, debt, and token holdings—has shrunk to just above 1.

Image courtesy of DALL-E, chart data from TradingView.com