MicroStrategy’s mounting losses are back in the spotlight — and the market is watching for whether the company could trigger another Bitcoin shock. MicroStrategy (MSTR) kicked off 2026 with a modest 3.43% pop as Bitcoin’s recent gains bled into the stock, but momentum is fragile. The company is heading into earnings with a potentially massive Q4 hit: a 24% drop in Bitcoin erased roughly $2.8 billion of Q3 gains, and analysts now expect the firm’s full-year operating outcome to land anywhere between a $7 billion loss and a $9.5 billion profit. With Bitcoin finishing the year near $87,600, projections are tilting toward the weaker end of that range — reviving skepticism about MicroStrategy’s Bitcoin-centric treasury strategy. Market context matters. MicroStrategy’s shares plunged 48% in 2025 and sit about 70% below their November 2024 peak. The stock has just recorded its first six-month losing streak since the company pivoted to a Bitcoin strategy in 2020 — a run that translates into a cumulative 134% drawdown on paper. Those technical wounds will be front and center when the Q4 report lands. There’s also a potentially contagious risk to watch. October’s sudden crash wasn’t entirely random: large holders exited ahead of an MSCI review that might have excluded MicroStrategy because of its heavy Bitcoin weighting — the company holds more than 671,000 BTC. That strategic exodus amplified volatility; with Q4 losses now likely to be disclosed, another bout of disorderly selling can’t be ruled out. Bitcoin itself remains about 25% below its pre-October highs, leaving room for renewed downside and the possibility of an early-2026 “flash crash” if positions are aggressively liquidated. Bottom line: risk assets began the year showing some lift, but it’s premature to call a trend reversal. All eyes will be on MicroStrategy’s quarterly numbers — they could either soothe doubts or re-ignite questions about the prudence and durability of a corporate strategy built around Bitcoin exposure. Sources: TradingView (MSTR/USD); X. Disclaimer: This article is informational only and not investment advice. Cryptocurrency trading is high risk — do your own research before making financial decisions. © 2026 AMBCrypto Read more AI-generated news on: undefined/news

#BTC