MicroStrategy Posts $12.5B Net Loss After $14.5B Bitcoin Write-Down
MSTR•MicroStrategy holds 847,363 bitcoins purchased for $64.1 billion at an average cost of $75,651 each, making it the largest corporate Bitcoin position. A drop below $60,000 triggered a $14.46 billion unrealized loss and a $12.54 billion net loss ($38.25 per share), pressuring shares below net asset value and risking further dilution.
1. Bitcoin Holdings and Cost Basis
MicroStrategy holds 847,363 BTC acquired for $64.1 billion at an average cost of $75,651 per coin, representing the largest corporate Bitcoin treasury.
2. Fair-Value Losses and Net Impact
With Bitcoin trading below $60,000, the company recorded a $14.46 billion unrealized loss under ASU 2023-08, leading to a $12.54 billion net loss of $38.25 per diluted share in early 2026.
3. Share Dilution and Investor Impact
As shares trade below net asset value, MicroStrategy issues new equity at a dilutive 1.0x MNAV; Michael Saylor noted that raising $1 billion costs existing shareholders an estimated $310 million in yield dilution.
4. Industry and Index Considerations
Other Bitcoin treasury firms have underperformed, and MSCI’s proposal to exclude digital-asset-heavy companies from global indexes could pressure passive funds holding MicroStrategy shares.
