Strategy reported a $12.4 billion net loss in the fourth quarter of 2025 as Bitcoin fell sharply, sending its shares down 17%. Despite the hit, executives say the company remains financially stable and committed to its long-term Bitcoin strategy.
Bitcoin slump drives massive quarterly loss
The loss was largely tied to Bitcoin’s 22% decline during the quarter. The cryptocurrency peaked near $126,000 in early October but dropped to below $88,500 by Dec. 31. Bitcoin has since fallen about 30% this year to around $64,500, well below Strategy’s average purchase price of $76,052.
The downturn weighed on Strategy’s balance sheet, leaving the firm down roughly 17.5% on its 713,502 Bitcoin holdings. The sell-off also dragged its stock lower, with shares closing at $107 on Thursday.
Revenue grows, but market volatility hits the stock
Despite the crypto-driven loss, Strategy reported a modest 1.9% year-on-year increase in Q4 revenue to $123 million, supported partly by its business intelligence segment. That growth was overshadowed by the broader market reaction to Bitcoin’s price drop.
Bitcoin’s latest decline to a low of $62,500 on Thursday coincided with the stock slump, highlighting the close link between Strategy’s valuation and Bitcoin’s performance.
Executives stress financial resilience
Chief financial officer Andrew Kang said Strategy’s capital structure remains “stronger and more resilient today than ever before,” pointing to its Bitcoin-heavy balance sheet and shift toward a digital credit model aligned with its long-term Bitcoin outlook.
The company ended the quarter with $2.25 billion in cash, enough to cover roughly 30 months of dividend payments, and no significant debt maturities until 2027. CEO Phong Le told investors there is no cause for concern, noting that Strategy’s enterprise value still exceeds its Bitcoin reserves and that its $8.2 billion in convertible debt represents about 13% net leverage, lower than many S&P 500 companies.