Bitcoin Giant Strategy Records $12.4 Billion Q4 Loss as MSTR Shares Hit 18-Month Low
Strategy reported a fourth-quarter net loss of $12.4 billion as Bitcoin’s price fell below the company’s average purchase cost, resulting in an unrealized loss of nearly $9 billion on its $45.4 billion Bitcoin holdings. Strategy has spent $54.2 billion on Bitcoin since 2020 and added 35,000 BTC during the quarter. The company’s shares fell over 17% to $107, marking a 71% decline in six months and 76% off last year’s high. This drop exceeds Bitcoin’s own 44% decline over the same period. Strategy maintains $2.25 billion in cash reserves, sufficient for 30 months of preferred stock dividends. Its flagship STRC preferred share product is $3.4 billion in size and pays 11.25% monthly. The company’s enterprise value now closely tracks its Bitcoin holdings, leading to its stock trading at a discount to its crypto assets. Concern is rising among investors about potential BTC sales, with prediction markets estimating a 32% chance of such action in 2024.
