Strategy faces $7.5B unrealized loss as Bitcoin sinks near $65K ahead of Q4 earnings
Strategy faces a $7.5 billion unrealized loss as Bitcoin nears $65K, causing its shares to drop 14% before its Q4 earnings report.Summary
Strategy, the largest corporate Bitcoin treasury holder, is approaching its Q4 earnings report with significant pressure as Bitcoin's price drops toward $65,500. Holding approximately 713,000 BTC acquired at an average of $76,000, the company now faces an unrealized paper loss of $7.5 billion, or a 14% drawdown, leading to a 14% plunge in its shares on Thursday.
The timing is critical, as the firm's Q4 2025 earnings release is scheduled for after market close, with analysts forecasting a loss per share (EPS) of -$0.08 on lower revenue compared to the previous quarter. This situation underscores the company's strong correlation to Bitcoin's price volatility.
Strategy's business model involves issuing equity to fund further Bitcoin accumulation. Although it still trades at a premium to its net asset value (mNAV multiple of 1.09), suggesting it can still raise capital without immediate shareholder dilution, investors are scrutinizing the long-term viability of this Bitcoin-heavy strategy ahead of comments from Michael Saylor on the earnings call.
(Source：Crypto Briefing)