Self-Proclaimed Billionaire Forced To Sell Private Jet After Bitcoin Crash

Bitcoin posted its biggest one-day drop since the 2022 crash, tumbling to $63,596.56 on Thursday. The price decline affected major players in the crypto space, including the company run by bitcoin evangelist Michael Saylor according to reports.

The company, known for stockpiling large amounts of bitcoin, reported a $12.4 billion loss for the fourth quarter of 2025. This marked a significant increase in losses compared to the same period in 2024, where the net loss was $670.8 million.

Saylor, who has previously stated his belief in bitcoin's long-term value, appeared undeterred during the company's earnings call. He reiterated his commitment to bitcoin, calling for the U.S. to become the crypto capital of the world.

Why Did This Happen?

The price of bitcoin peaked in October but has since declined sharply, reaching levels not seen in over a year. The company now holds 713,502 bitcoins at an average cost of $76,052, while the current market price is significantly lower. This has led to a large unrealized loss on its holdings.

The company's loss was primarily due to the decline in the value of its digital assets. Accounting rules require it to mark its holdings to market, resulting in a $17.4 billion unrealized fair-value loss for the quarter.

How Did Markets React?

The company's stock price fell 17% on Thursday, mirroring the drop in bitcoin's price. This marked one of the worst performances for the stock in years. The shares have fallen 68% in the past year.

The decline in bitcoin's price has also affected other companies that have followed the company's lead in holding large amounts of the cryptocurrency. Shares in several firms have also seen significant drops as the market struggles with the ongoing downturn.

What Are Analysts Watching Next?

The company has $2.25 billion in cash, which provides it with 2.5 years of coverage for dividend payments on its preferred stock without needing to liquidate its bitcoin holdings. This gives it flexibility in the short term.

Analysts are also watching how the broader market handles the ongoing decline. The company has taken steps to avoid forced liquidation of its holdings, but continued price pressure could force further action.

Regulatory developments are another key focus. A White House meeting between crypto companies and banks failed to resolve disagreements over stablecoin regulations, highlighting ongoing tensions in the industry.

The company's strategy of holding large amounts of bitcoin has made it both a leader and a target in the crypto space. As the market continues to adjust to new realities, investors are watching closely to see whether the company can weather the storm.