Strategy’s latest quarterly report landed in the middle of a sharp crypto selloff, with the company posting a massive Q4 loss tied mainly to accounting markdowns on its bitcoin holdings - and the market punishing the stock.
Key takeaways
Strategy’s Q4 net loss hit $12.4B, driven largely by a $17.4B unrealized fair-value loss on bitcoin.
The company reported 713,502 BTC held at a $76,052 average cost, while bitcoin fell into the low-$60,000s during Thursday’s selloff and MSTR dropped about 17%.
Management is leaning harder into preferred issuance and STRC, backed by a $2.25B USD Reserve intended to support dividend and interest coverage.
Strategy reported a net loss of $12.4 billion for the fourth quarter of 2025 as a steep fair-value swing in bitcoin prices overwhelmed its operating results. Shares fell about 17% on Thursday as bitcoin slid into the low-$60,000s during the broader market drop.
The company said it held 713,502 BTC as of Feb. 1, with a total cost basis of $54.26 billion, implying an average purchase price near $76,052 per bitcoin. It also highlighted a FY2025 “BTC Yield” of 22.8% and said it added 41,002 BTC in January 2026 alone.
Bitcoin markdown swamps the quarter
Strategy’s operating loss for Q4 came in at $17.4 billion, which the company attributed to an unrealized fair-value loss on its digital assets under the newer accounting treatment. That flowed through to the bottom line, producing the $12.4 billion net loss (about $42.93 per diluted share).
Despite the headline loss, Strategy ended 2025 with $2.3 billion in cash and cash equivalents, up sharply from the prior year, after establishing what it calls a USD Reserve.
Bitcoin holdings and valuation snapshot
In its dashboard-style disclosures, Strategy said its bitcoin position was worth about $59.75 billion at a bitcoin price around $83,740 (as of Jan. 30), versus the $54.26 billion cost basis.
That marked-to-market framing clashed with Thursday’s tape: bitcoin traded down into roughly the $62,000-$65,000 zone during the selloff, putting spot prices below Strategy’s average cost and amplifying concerns across bitcoin-proxy equities.
$25.3B raised in 2025 and a bigger “Digital Credit” push
Management emphasized capital-raising over the last year, saying Strategy raised $25.3 billion in 2025 and was the largest U.S. equity issuer in FY2025 (about 8% of total issuance).
A central focus is STRC, a variable-rate preferred instrument the company positions as part of a “Digital Credit” platform. Strategy said STRC scaled to an aggregate stated amount of $3.4 billion and currently carries an 11.25% dividend rate, supported by a $2.25 billion USD Reserve that it says covers about 2.5 years of dividends and interest.
Software business steadier, but not the story
Strategy’s legacy software segment generated $123.0 million in Q4 revenue, up 1.9% year over year, with subscription services revenue rising to $51.8 million. Gross profit was $81.3 million, implying a 66.1% gross margin.
