MicroStrategy’s most recent financial disclosures have sent ripples across traditional stock exchanges, with the announcement of a significant loss of $17.44 billion for the last quarter of 2025.
However, this has not stopped the company; rather, it has allowed itself to purchase even more Bitcoins (BTC). The paradox is grounded in changes to accounting standards and a radical corporate philosophy led by Michael Saylor.
The $17 Billion Loss Illusion
To understand why Strategy is so complex, the first thing to examine is the recent ASU 2023-08 accounting amendment. In the past, companies were forced to report crypto ownerships at their lowest value for the quarter (impairment) and could not mark them up. The new standards require the “fair value” accounting method, which means the firm has to record the market value of its BTC at the end of each reporting period.
Data from Bloomberg indicate that the loss amounting to $17.44 billion is mainly a non-cash, unrealized loss. It shows a temporary decline in the whole crypto heatmap at the end of the fiscal year. Since MicroStrategy holds a Bitcoin wallet containing over 673,000 BTC, a 10% price drop would represent a multi-billion-dollar “loss” on paper, even though no coins were actually sold.
The “BTC Yield” Strategy
The major factor Strategy continues to consider is a proprietary metric called BTC Yield. Michael Saylor sees the firm as a “Bitcoin Development Company”, which is based on two factors:
An Accretive Accumulation: The strategy uses “intelligent leverage.” They issue convertible bonds at low interest rates (often below 2%) to acquire an asset they expect to appreciate by 40-50% over time.
Market Premium: According to Yahoo Finance analysts, Strategy stock (MSTR) is typically traded at a premium compared to the Bitcoin it holds. By selling stock at a high price to purchase “cheaper” Bitcoin, the firm can raise the amount of BTC secured by each share and, theoretically, increase shareholder value, even though the value is not realized through immediate volatility.
The adoption of BTC futures by institutional players has set the tone for Bitcoin’s future. The Interactive Brokers’ open interest report indicates that institutional players are primarily behind the futures’ price, typically buying at lower prices and selling at higher ones as they gradually roll over their positions. A similar trend may also be observed with ETHUSD.
This reverse trading strategy has not prevented the company from making substantial profits; it has actually helped it maximize them, considering the market volatility and the nature of futures contracts.
Additionally, the move to denominate the remaining Bitcoin supply in terms of the company’s Bitcoin reserve is providing a strong incentive for both retail and institutional investors to align with the Strategy. It is much less likely to experience troubles with it.
MicroStrategy is playing a long game, in which the monetary debasement hedge is its primary product. Although the $17 billion headline figure is impressive, the company’s vision of the future, as outlined in its “2045 Vision,” in which Bitcoin becomes the world’s main reserve asset, still dominates its operational focus.
If nothing else, paper losses will always be extremely minor compared to the goal of total Bitcoin accumulation as long as they can service their low-interest debt.