MicroStrategy (MSTR) stock rose approximately 33% thanks to the recovery in the price of Bitcoin and the company’s reported high revenue.
MicroStrategy’s stock price rebounded after Bitcoin’s price rebounded, coinciding with the company reporting significant revenue growth in the fourth quarter of 2025.
At that time, the company reported revenue of $123 million, representing a 1.9% year-over-year increase, driven primarily by the strong performance of its subscription services, which grew 62.1% year-over-year. These operational signals coincided with a more favorable environment for Bitcoin, which was trading near $68,605.
MicroStrategy acquired 1,142 BTC for approximately $90 million on February 9 and another 2,932 BTC for around $264 million around January 27. These acquisitions reinforced the company’s perception as one of the largest institutional Bitcoin holders at the corporate level.
However, this strategy had a significant accounting impact. In the fourth quarter of 2025, the company reported a GAAP net loss of $12.4 billion, equivalent to $42.93 per share, largely attributed to non-cash impairment charges on its BTC holdings.
A stock adjusted for Bitcoin volatility
MicroStrategy’s continued Bitcoin purchases solidify its position as a highly leveraged proxy for the digital asset, which implies significant downside risks. The stock has a high beta relative to BTC, so sharp declines in the Bitcoin price could quickly translate into downward pressure on the share price and further impairment charges.
Another factor to consider is shareholder dilution. The company has financed some of its purchases through capital placements, such as the recent sale of 616,715 shares for $89.5 million. Continued issuances could limit the upside potential for existing shareholders, even in a Bitcoin rally scenario.
The size of Bitcoin holdings increases the likelihood of forced sales during extreme downturns, with potential adverse effects on both the market and the financial statements. Added to this is regulatory risk, as adverse policy changes or enforcement actions against the crypto sector could negatively impact Bitcoin and, by extension, MicroStrategy’s valuation.
Looking ahead, the sustainability of the rally will largely depend on Bitcoin’s trajectory and the company’s capital allocation decisions.
