Bitcoin's sharp drop results in a massive loss of $12.4 billion, Saylor's financial experiment is in jeopardy.

The fall of Bitcoin below $63,000 has exacerbated the crisis in the digital asset sector, posing greater risks for Michael Saylor's Strategy Inc. This Bitcoin-hoarding company confirmed a net loss of $12.4 billion in the fourth quarter in its financial report released on Thursday, mainly due to the decline in the value of its large Bitcoin holdings. This pain deepened further this week as new market turmoil drove the Bitcoin price below the cumulative cost price of the company's holdings for the first time since 2023, rendering the gains made by Bitcoin after Trump's election victory useless. For a long time, this former enterprise software company had maintained a high stock price by converting stock premiums into Bitcoin to acquire machines. At its peak, Strategy's stock price was far higher than the value of its Bitcoin holdings, allowing it to issue new shares, purchase more Bitcoin, and repeat this cycle continuously. However, with the disappearance of premium and tightening capital markets, this model is no longer sustainable.