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Saylor’s Strategy to register $5.9 billion loss after accounting change

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Michael Saylor’s Strategy said it will register an unrealized $5.9 billion loss in the first quarter after adopting an accounting change that requires valuing the digital asset at market prices. 

Shares of the dot-com-era software maker turned leveraged Bitcoin proxy formerly known as MicroStrategy fell as much as 14% on Monday. Earlier, Bitcoin wiped out almost all of its gains since Donald Trump’s U.S. presidential election win in early November.

Strategy and fellow corporate buyers of Bitcoin are being made to recognize the unrealized changes that often produce big swings in earnings or, in the case of Strategy last quarter, losses. Strategy waited until the first quarter to adopt the accounting change that was approved last year. 

Prior to the accounting change, the Tysons Corner, Virginia-based company has been classifying its Bitcoin holdings as intangible assets—similar to brand recognition or trademarks. That designation forced Strategy to permanently mark down the value of its holdings when the price of Bitcoin dropped. Gains could only be recognized when tokens are sold, which Saylor has vowed not to do, even saying his digital wallet keys should be burned when he dies.   

Part of the first-quarter loss will actually result from Saylor’s recent spending binge, which has produced roughly $1 billion of paper losses on the $7.79 billion the company spent on Bitcoin in 2025, according to Bloomberg calculations. The company owned $41.8 billion of Bitcoin coming into the year, an amount that fell by nearly $5 billion in the first quarter with the 12% drop in the price of the tokens. That equates to about $6 billion of “mark-to-market” losses, according to Bloomberg calculations as of March 31, before taxes.

At the same time, the company’s retained earnings will whipsaw into positive territory, courtesy of a nearly $13 billion boost from the new accounting, according to Bloomberg calculations. 

Strategy became the first public company to buy Bitcoin as a capital allocation strategy in 2020, with co-founder and chairman Saylor saying the enterprise software firm needed to embrace the policy to survive. It grabbed the attention of Wall Street as the shares took off with speculators using it as a proxy for the digital currency. 

Saylor took advantage of the surging demand to sell more shares to purchase additional Bitcoin, eventually expanding to convertible debt and preferred shares offerings to fuel the buying spree. The stock is up more than 2,200% since the start of August 2020. 

Hedge funds have been driving some of the demand for the convertible debt, as they seek out Strategy for trades that incorporate buying the bonds and selling the shares short, essentially betting on the underlying stock’s volatility.

With the price of Bitcoin faltering along with other risky asset this year, the meteoric appreciation in the value of Strategy’s shares has also slowed. And last week, Strategy’s shares got their only sell rating after boutique equity research firm Monness, Crespi, Hardt & Co. cut its view on the firm, saying the market for the securities used to fund the Bitcoin purchases is increasingly saturated.

This story was originally featured on Fortune.com



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As RFK Jr. defends cuts to public wealth, experts warn of devastating effects that could haunt Americans for decades

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Inside activist investor Elliott’s proxy fight to break up Phillips 66

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© 2025 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.



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5 gut-healthy foods everyone should be eating, according to science

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There’s a lot of buzz about supporting your gut health, which impacts your mental well-being, colorectal cancer risk, and immunity. But knowing the importance of gut health is one thing—knowing the best way to feed your gut is another.

Your gut health refers to how well your digestive system is functioning to break down food, absorb nutrients, and eliminate waste. Within your gut lies the gut microbiome, made up of trillions of microorganisms including bacteria, viruses and fungi. To keep your gut healthy, that bacteria needs to be fed and maintained—which is where a gut-healthy diet comes in.

Which foods are best for your gut health?

When you think of gut-friendly foods, you may think of fermented foods like sauerkraut and yogurt, which have naturally occurring bacteria that come from the fermentation process.

Fermented foods are packed with probiotics—live bacteria and yeasts—that naturally live in your body and benefit your health.

There are actually two main types of foods to support your gut health: probiotics and prebiotics. Prebiotics are not alive—but they are crucial to feed your good gut bacteria. They are found in fiber-rich, plant-based foods, and research supports their cancer- and chronic disease-fighting properties. 

“They’re like the fuel,” Amy Bragagnini, RD, national spokesperson for the Academy of Nutrition and Dietetics, told Fortune. “To make a lasting, sustainable microbiome, you need a balance of both [prebiotics and probiotics].”

Of the gut-healthy foods to choose from, here are science-backed options to help give your gut microbiome a health boost. 

1. Kimchi

Kimchi, a staple of Korean food, is a spicy fermented cabbage, similar to sauerkraut, filled with probiotics. Studies have linked the consumption of kimchi to improved blood sugar regulation in prediabetic individuals and improved metabolic health. You can find it refrigerated in grocery stores to be used as a flavor-boost in grain bowls or fried rice.

2. Yogurt and kefir

Since yogurt and kefir are fermented dairy products, they are packed with probiotics and beneficial bacteria produced from the fermentation process. You’ll notice that these dairy products will usually be labeled with “live and active cultures” and a list of the bacteria in them—that’s a good indicator that the yogurt or kefir has the probiotics you’re looking for.

Additionally, yogurt’s gut-health benefits may help prevent colorectal cancer. A recent study published in the journal Gut Microbes found that long-term yogurt consumption—two or more servings per week—was tied to lower rates of proximal colorectal cancer (on the right side of the colon).

Meanwhile kefir, which is a fermented yogurt drink, is shown to improve immune, gastrointestinal, and metabolic health, while also helping to reduce inflammation.

3. Oatmeal

Whole grains like oatmeal are a great source of prebiotic fiber to feed your gut bacteria, which helps to support digestion and an overall healthy gut microbiome.

A 2005 study also found that whole grains reduced colorectal cancer risk in women. Whole grains’ high fiber content, resistant starch, and prebiotics improve the gut microbiome to reduce risk, researchers wrote, while “diluting potential carcinogens and promoters in the colon and decreasing transit time,” which reduces colon tissue’s exposure to harmful compounds.

4. Onions and garlic

These alliums are full of prebiotics proven to help gut flora grow and flourish. Studies show they may also help to improve symptoms associated with gastrointestinal distress, osteoporosis, atherosclerosis, gastrointestinal disorders, cardiovascular disease and Type 2 diabetes. 

5. Asparagus

Asparagus is one of the most prebiotic-rich foods you can eat. These veggies are packed with beneficial phytochemicals like xylose, inulin, flavonoids, fructans, and saponins. These nutrients, in addition to asparagus’ high fiber content, have been shown to promote the growth of certain probiotic bacterial strains.

For more on gut health:

This story was originally featured on Fortune.com



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