Strategy Reports $12.4B Fourth Quarter Loss As Bitcoin Falls

The Bitcoin buying company Strategy reported a net loss of $12.4 billion in the fourth quarter of 2025, driven down by Bitcoin’s 22% fall over the quarter.

Bitcoin (BTC) reached a peak high of $126,000 in early October, but tumbled over the quarter ending Dec. 31 to under $88,500. Bitcoin is down 30% so far this year to $64,500, below Strategy’s average cost per BTC of $76,052.

Strategy (MSTR) said on Thursday that despite the loss, its Q4 revenues rose 1.9% year-on-year to $123 million, driven in part by its business intelligence arm, but the recent Bitcoin sell-off saw its shares close 17% down on Thursday to $107.

Bitcoin’s latest tumble pushed it to a low of $62,500 on Thursday, leaving Strategy down 17.5% on its 713,502 Bitcoin holdings.

Strategy on strong financial footing, says finance boss

Despite the massive quarterly loss, Strategy chief financial officer Andrew Kang said in a statement that the company’s capital structure remains “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.”

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The company boosted its cash holdings to $2.25 billion in Q4 to allow for 30 months of dividend payouts, signaling financial strength despite the market downturn.

Strategy also has no major debt maturing until 2027, meaning it isn’t under immediate pressure to repay borrowings and may not be forced to liquidate Bitcoin to meet obligations in the near term.