Strategy Reports $12.4B Loss on Bitcoin Slide in Q4 2025

Strategy, the business intelligence firm known for its massive Bitcoin holdings, reported a $12.4 billion net loss for the fourth quarter of 2025, reflecting the steep 22% decline in Bitcoin’s price during the period.

Bitcoin began the quarter near its all-time high of $126,000 in early October but fell to under $88,500 by 31 December, placing Strategy’s 713,502 BTC treasury well below its average acquisition cost of $76,052 per coin. The year-to-date price as of February 2026 remains approximately $64,500, leaving the firm’s Bitcoin holdings down roughly 17.5%.

Despite the paper loss, Strategy’s underlying business showed modest growth. Quarterly revenue rose 1.9% year-on-yearto $123 million, buoyed by ongoing enterprise software sales. However, the market responded negatively to the update. Shares of Strategy closed down 17% to $107 on the day of the earnings announcement, in step with continued weakness in Bitcoin markets.

Executives moved quickly to reassure investors. CFO Andrew Kang said the company’s capital structure was “stronger and more resilient today than ever before.” CEO Phong Le echoed that view on the earnings call: “I’m not worried, we’re not worried, and no, we’re not having issues.”

The company reported $2.25 billion in cash reserves, covering approximately 30 months of dividend obligations. It also confirmed no major debt maturities until 2027, and total convertible debt of $8.2 billion, which it described as roughly 13% net leverage.

Phong Le further emphasised that Strategy’s enterprise value remains well above its $45 billion Bitcoin reserve, suggesting continued confidence in the long-term strategy despite near-term volatility.

For Bitcoin observers, the report illustrates both the risks and resilience of corporate Bitcoin treasuries in volatile markets. Strategy remains one of the most prominent examples of high-conviction Bitcoin balance sheet strategy — and a key bellwether for institutional adoption.