Strategy posts $12.4B Q4 loss as Bitcoin falls; shares fall 17%
Strategy reported a net loss of $12.4 billion for the fourth quarter of 2025, attributing the result to Bitcoin’s 22% decline over the period.
Bitcoin (BTC) hit a peak of $126,000 in early October but fell below $88,500 by Dec. 31. It is down 30% so far this year at $64,500, below Strategy’s average acquisition cost of $76,052 per BTC.
Strategy (MSTR) said Thursday that despite the loss, fourth-quarter revenue rose 1.9% year over year to $123 million, supported in part by its business intelligence segment. The recent Bitcoin sell-off, however, saw its shares close 17% lower on Thursday at $107.
Bitcoin’s latest drop pushed the price to $62,500 on Thursday, leaving Strategy down 17.5% on its 713,502 Bitcoin holdings.
CFO says Strategy remains on solid financial footing
Despite the quarterly loss, chief financial officer Andrew Kang said in a statement that the company’s capital structure is “stronger and more resilient today than ever before.” “Strategy has built a digital fortress anchored by 713,502 Bitcoins and our shift to Digital Credit, which aligns with our indefinite Bitcoin horizon.”
The company increased its cash balance to $2.25 billion in the fourth quarter, providing capacity for 30 months of dividend payments.
Strategy also has no significant debt maturities until 2027, reducing near-term repayment pressure and lowering the likelihood of selling Bitcoin to meet obligations.
Chief executive officer Phong Le told investors on an earnings call that he sees no cause for concern regarding the company’s financial position or its Bitcoin strategy. “I’m not worried, we’re not worried, and no, we’re not having issues.”
Le added that Strategy’s enterprise value remains above its $45 billion Bitcoin reserve and that its $8.2 billion of convertible debt represents about 13% net leverage, below most companies in the S&P 500.
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