MicroStrategy reported a net loss of 670.8 million dollars during the fourth quarter of 2024. This negative financial result was mainly driven by a massive one-billion-dollar impairment on its digital holdings according to the official report. Michael Saylor, the firm’s executive chairman, reaffirmed his unwavering commitment to MicroStrategy and its investment in Bitcoin despite the external pressure from the market.
At the end of 2025, the company reached a historic record by holding a total of 672,497 Bitcoin coins in its corporate treasury for the annual close. The value of this stash was estimated at approximately 59 billion dollars according to current market prices. Likewise, the firm accumulated a cash reserve of 2.19 billion dollars to mitigate liquidity risks regarding dividend payments and other financial obligations.
On the other hand, the company’s share price suffered a dramatic drop of over sixty percent recently. The securities closed the year 2025 at 153.26 dollars after losing value due to the aggressive dilution of its shares in the open market. This decline reflects the high sensitivity of the asset to the extreme volatility of the cryptocurrencies market during the last months of trading operations.
The future of the corporate treasury in the face of new market regulations
In addition, the company’s management has designed various operating scenarios that vary depending on the future behavior of the digital asset. The range of projected results fluctuates between losses of seven billion and possible profits of nine thousand five hundred million dollars according to the balance. In this way, the company tries to navigate an environment where accounting transparency is fundamental for investors seeking institutional stability.
Therefore, the market is closely watching the upcoming decision regarding the company’s permanence in the MSCI index. A possible exclusion could generate massive capital outflows and significantly affect the passive demand for institutional shares in a major way. However, the company maintains its stance of using intelligent leverage to maximize the value accumulated in its long-term digital reserves.
Is the model of massive digital asset accumulation sustainable in the long term?
On the other hand, analysts have expressed structural concerns about the compression of the company’s net asset value today. The lack of a valuation premium suggests that investors are valuing the firm exclusively for its reserves of physical digital assets. Nevertheless, the strategy of maintaining cash reserves for twenty-four months provides a critical buffer against prolonged drops in the Bitcoin spot market.
It is also important to highlight that the diversification of funding sources remains a top priority for the management team. The company has turned to preferred stock offerings and convertible bonds to finance its purchases without selling its core assets at any time. Likewise, Michael Saylor’s approach suggests that Bitcoin remains the ultimate reserve asset for modern financial institutions.
