Strategy reported a net loss of $12.4 billion in the fourth quarter of 2025, largely driven by a sharp decline in Bitcoin prices during the period. The loss followed a 22% drop in Bitcoin over the quarter, which significantly reduced the value of the company’s crypto holdings.
Bitcoin fell from a record high of $126,000 in early October to below $88,500 by December 31. So far this year, the cryptocurrency is down roughly 30% to around $64,500, well below Strategy’s average purchase price of $76,052 per Bitcoin.
Despite the crypto-driven losses, Strategy said its fourth-quarter revenue rose 1.9% year-on-year to $123 million, supported by growth in its business intelligence operations. However, investor sentiment deteriorated as Bitcoin slid further, sending Strategy’s shares down 17% on Thursday to $107.
The latest sell-off pushed Bitcoin to an intraday low near $62,500, leaving Strategy’s 713,502 Bitcoin holdings down about 17.5% in value.
Strategy executives stress balance sheet strength
Despite the headline loss, Strategy’s leadership emphasized that the company remains financially resilient. Chief Financial Officer Andrew Kang said the firm’s capital structure is now “stronger and more resilient than ever,” pointing to its long-term Bitcoin strategy and improved liquidity position.
Strategy ended the quarter with $2.25 billion in cash, enough to cover roughly 30 months of dividend payments, highlighting its ability to withstand near-term market volatility. The company also faces no major debt maturities until 2027, reducing the risk of forced asset sales during periods of market stress.
Chief Executive Officer Phong Le echoed that confidence during the earnings call, telling investors there was no cause for concern regarding the company’s financial position or Bitcoin strategy. He added that Strategy’s enterprise value remains above its $45 billion Bitcoin reserve, while its $8.2 billion in convertible debt represents just 13% net leverage, a level lower than many companies in the S&P 500.
