- Enterprise software company Strategy revised its year-end prediction to $85,000-$110,000 per Bitcoin.
- The business expects BTC’s failure to reach its earlier $150,000 target before the end of 2025 to negatively impact its FY 2025 earnings report.
Strategy’s (formerly MicroStrategy) latest disclosure has ignited further doubts on the long-term viability of its Bitcoin (BTC) playbook. Amplifying the FUD (Fear, Doubt, Uncertainty) around the company was its admission that a new all-time high for the premier digital asset before year-end now looks dim.
Strategy Revises Year-End Bitcoin Prediction
According to Strategy’s Form 8-K filing at the Securities and Exchange Commission (SEC) on Monday, it drew its earlier $150,000 per BTC year-end projection from the “approximate consensus midpoint of third-party research analysts.” However, Bitcoin’s volatility and consequent drawdown from $111,612 as of October 30 to $80,660 on November 21 this year have led the company to reassess its assumptions.
Instead of its expected $150,000 per BTC by year’s end, Strategy lowered its outlook between $85,000 and $110,000. This means the asset has an unlikely chance of breaking its all-time high of $126,198.07 on October 7 this year.
Expected Losses for FY 2025
As a result of its revised projections, Strategy expects its predicted price spectrum to yield losses in its 2025 fiscal-year report.
- Operating Income (Loss): between approximately $(7.0) billion and $9.5 billion
- Net Income (Loss): between approximately $(5.5) billion and $6.3 billion
- Diluted Earnings (Loss) Per Share: between approximately $(17.0) per share of common stock and $19.0 per share of common stock
The figures assume the company will successfully achieve its year-end Bitcoin Yield Target of 22%-26%. Meanwhile, the firm anticipates its Bitcoin gain target to be between $8.4 billion and $12.8 billion during the period.
MSTR and Bitcoin Price Performance
Strategy’s bleak forecast caused MSTR’s stock to dive from its opening of $168.26 on Monday to a $155.80 low hours later. On the other hand, Bitcoin pivoted between a $91,874.79 high and an $83,862.25 low in the last 24 hours heading to 12 noon (EST).
The unfavorable prediction came as the company announced it had acquired 130 BTC for $11.7 million from November 17 to 30. This increases its digital asset treasury to 650,000 BTC, locking in roughly 3.1% of Bitcoin’s 21 million supply cap.
Furthermore, Strategy just unveiled its new USD reserve to safeguard the payouts of investors, especially during crypto market volatility, without ever selling its BTC assets.
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