This story was originally published on CFO Dive. To receive daily news and insights, subscribe to our free daily CFO Dive newsletter. The Financial Accounting Standards Board on Wednesday decided against pursuing research and a potential update to accounting standards that govern the preparation of personal financial statements.  The vote came less than two years after a professor of accounting at Brooklyn College of the City University of New York penned an agenda request asking the FASB to revamp the r ...

Core Insights - Strategy Inc. reported a net loss of $12.4 billion for Q4 2025, primarily due to unrealized losses on its bitcoin holdings as cryptocurrency prices fell [1] - The company holds 713,502 bitcoins, acquired at a total cost of $54.26 billion, averaging $76,052 per bitcoin, and continued to accumulate more bitcoins despite losses [1][4] - The adoption of fair value accounting in January 2025 has led to significant fluctuations in financial results, reflecting bitcoin's price changes directly [2] Financial Performance - The company's stock (MSTR) fell 17.12% to $106.99, with a further decline to $103.14 in after-hours trading, totaling over a 20% drop as investors reacted to the quarterly loss and ongoing bitcoin price weakness [3] - Analysts have begun to lower price targets for the stock due to the combination of accounting losses and market volatility [3] Strategic Positioning - Executive Chairman Michael Saylor emphasized the company's long-term strategy, highlighting the accumulation of bitcoins and the transition to Digital Credit, which aligns with a long-term bitcoin investment horizon [4] - The market value of the bitcoin holdings was $59.75 billion as of February 1, based on a bitcoin price of $83,740, although this valuation became increasingly unrealistic as prices fell below $63,000 shortly thereafter [4] Preferred Stock Developments - Strategy's STRC preferred stock has grown to $3.4 billion with an annualized yield of 11.25%, despite market challenges [5] - Since its launch, the company has distributed $413 million to STRC shareholders, achieving a blended annual yield of 9.6%, with distributions classified as non-taxable returns of capital for U.S. tax purposes [6]

Core Viewpoint - LendingClub Corp. (NYSE:LC) has experienced significant stock price declines despite reporting strong earnings, primarily due to its transition to fair value option accounting [1][2]. Financial Performance - The company reported a net income increase of 164% for 2025, reaching $135.7 million, up from $51.3 million in 2024 [3]. - In Q4 alone, net profit surged by 329% to $41.6 million compared to $9.7 million year-on-year [3]. - Total revenues for the full year increased by 27% to $998.8 million from $787 million in 2024 [4]. - Revenues in Q4 rose by 23% year-on-year, driven by higher marketplace sales, loan sale pricing, net interest margin, and strong credit performance [4]. Accounting Changes - The company is transitioning to fair value accounting, which eliminates the upfront provision for credit losses under the previous standard, aiming to better align revenue with credit costs and enhance returns on capital [2][3]. - The Chief Finance Officer stated that this shift would establish "a consistent accounting framework" across the company's marketplace and bank businesses [3].