MicroStrategy (MSTR) reported a massive unrealized loss of $17.44 billion in Q4 of 2025 due to a 25% decline in Bitcoin prices. The company’s Bitcoin-centric strategy is highly volatile, with stock falling 53% in Q4. Strategy doubled down on Bitcoin purchases despite concerns about debt servicing. It holds $60 billion in BTC but trades at a market cap of $47 billion.

Michael Saylor’s Bitcoin treasury strategy is under scrutiny as Strategy establishes a $1.44 billion cash reserve to cover financial obligations without selling Bitcoin. Strategy holds over 3% of the total BTC supply and slashed year-end price assumptions to $85,000 to $110,000, potentially incurring $5.5 billion to $6.3 billion in losses in 2025.

S&P Global Ratings assigned Strategy a B-minus credit rating in October 2025, citing concerns about debt maturing in 2028 and the lack of income generated by Bitcoin. Strategy’s legacy software business struggles to generate cash flow, relying on Bitcoin appreciation for earnings. Analysts worry about the risk of default if Bitcoin crashes.

Despite mounting risks, Strategy continues to aggressively purchase Bitcoin, banking on access to capital markets staying open. MSTR stock performance hinges on BTC prices, with historical underperformance during pullbacks. Analysts recommend buying MSTR stock, with an average price target of $486.29, indicating potential upside of almost 200% from current levels.

Read more at Yahoo Finance: Big Pain Is Ahead for MicroStrategy Stock as Bitcoin Losses Mount. How Should You Play MSTR for January 2026?