Michael Saylor’s company, Strategy (formerly MicroStrategy), will report a $5.9 billion unrealized loss in Q1 due to a new accounting rule that values Bitcoin at market prices.

The stock fell up to 14% as Bitcoin’s price dropped 12% this year, erasing nearly $5 billion from Strategy’s holdings.

The company spent $7.79 billion on Bitcoin in 2025 alone, resulting in around $1 billion in paper losses.

Despite the setback, the new rule gives Strategy a $13 billion boost in retained earnings, Yahoo Finance has reported.

Strategy, which began buying Bitcoin in 2020, has seen its shares soar over 2,200% since then, but momentum is slowing, and it recently received its first sell rating.

Written by B.C. Begley