Strategy posts record quarterly loss after Bitcoin sell-off

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Strategy shares fall as Bitcoin losses mount

Bitcoin pullback drives massive accounting loss

For the fourth quarter of 2025, Strategy reported an operating loss of approximately $17.4 billion, driven almost entirely by unrealized losses on its bitcoin holdings under fair value accounting. Net loss attributable to common shareholders totaled $12.6 billion, compared with a loss of about $671 million in the same quarter a year earlier. The company said bitcoin’s sharp decline during the period flipped its balance sheet from a sizable paper gain into a deep unrealized loss.

The results coincided with a dramatic downturn in bitcoin prices. Bitcoin fell from roughly $73,000 at the open to as low as $62,000 intraday, a slide of nearly 15%, intensifying pressure on companies with large crypto exposure. A Messari researcher previously estimated Strategy’s quarterly losses would reach roughly $17.4 billion, placing the period alongside losses recorded by firms such as AIG, Fannie Mae and Freddie Mac during the 2008 financial crisis.

Shares slide as investors reassess strategy

Strategy’s stock moved sharply lower following the report. Shares of Strategy (NASDAQ: MSTR) opened near $121 and closed around $106,99 before slipping further to roughly $102 in after-hours trading. Beyond the session move, the stock’s momentum has worsened: down 17.12% over the past 24 hours, down 23.58% over five days, and down 35.98% over the past month, reflecting intensified selling pressure as investors reassessed the premium once assigned to the company’s bitcoin accumulation strategy. The stock remains down more than 70% from levels seen a year ago.

Strategy share price performance. Source: TradingView

Despite the losses, Strategy remains the largest corporate holder of bitcoin, reporting 713,502 BTC on its balance sheet as of early February. The company acquired much of its holdings during bitcoin’s late-2024 rally, when prices briefly surged above $126,000, bringing its average acquisition cost to about $76,000 per bitcoin.

Leadership stays the course amid volatility

Management struck a confident tone despite the market turmoil, arguing the firm’s financing and reserve strategy leaves it positioned to keep executing through a weaker bitcoin tape. President and CEO Phong Le said the company raised $25.3 billion in 2025 to advance its bitcoin treasury strategy and expanded holdings to 713,502 bitcoins, including purchases made in January 2026. CFO Andrew Kang pointed to a strengthened capital structure, the shift to fair value reporting, and a $2.25 billion cash reserve intended to provide more than two years of dividend and interest coverage, framing the reserve as a stabilizer while bitcoin prices remain volatile. Executive Chairman Michael Saylor offered little commentary beyond a brief post on X: “HODL.”

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