Strategy reported a $12.4 billion net loss for the fourth quarter of 2025, a result the company attributed largely to a 22% drop in Bitcoin during the period.
Bitcoin peaked near $126,000 in early October and fell to below $88,500 by Dec. 31. The coin traded around $64,500 year-to-date, about 30% lower, and sitting beneath Strategy’s average cost per Bitcoin of $76,052.
Despite the writedown, Strategy’s Q4 revenue increased 1.9% year‑over‑year to $123 million, driven primarily by gains in its business intelligence unit. The recent Bitcoin sell-off pushed Strategy shares down roughly 17% on Thursday, to $107.
Bitcoin’s intraday low reached about $62,500 on Thursday, a move that translated to an approximate 17.5% decline in value across Strategy’s holdings of 713,502 Bitcoins.
CFO Andrew Kang said the company remains financially secure, calling its capital structure “stronger and more resilient today than ever before.” He described Strategy as having “built a digital fortress anchored by 713,502 Bitcoins and our shift to Digital Credit, which aligns with our indefinite Bitcoin horizon.”
Strategy increased its cash balance to $2.25 billion in Q4, which the company says would cover roughly 30 months of its dividend payments. Management also noted that the firm has no significant debt maturing until 2027, reducing near-term pressure to liquidate Bitcoin to meet obligations.
CEO Phong Le told investors on the earnings call there is no cause for alarm about the company’s finances or Bitcoin approach: “I’m not worried, we’re not worried, and no, we’re not having issues.”
Le added that the company’s enterprise value remains above its roughly $45 billion Bitcoin reserve and pointed out that $8.2 billion of convertible debt represents about 13% net leverage—below that of many S&P 500 companies.
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