Bitcoin buying firm Strategy reported a net lack of $12.4 billion within the fourth quarter of 2025, driven by Bitcoin's 22% decline for the quarter.
Bitcoin (BTC) peaked at $126,000 in early October but plummeted to below $88,500 through the quarter ended December 31. Bitcoin is down 30% to date this yr to $64,500, below Strategy's average cost per BTC of $76,052.
Strategy (MSTR) said Thursday that fourth-quarter revenue rose 1.9% year-over-year to $123 million despite the loss, thanks partially to its business intelligence division. However, the recent Bitcoin sell-off caused shares to shut 17% lower at $107 on Thursday.
Strategy shares fell together with Bitcoin on Thursday. Source: Google Finance
Bitcoin's recent crash sent it right down to a low of $62,500 on Thursday, leaving Strategy down 17.5% on its 713,502 Bitcoin holdings.
Strategy based on strong financial foundation, says CFO
Despite the large quarterly loss, Strategy CFO Andrew Kang said in an announcement that the corporate's capital structure stays “stronger and more resilient today than ever before.”
“Strategy has built a digital fortress based on 713,502 Bitcoins and our shift to digital lending, which is consistent with our unlimited Bitcoin horizon.”
The company increased its money balance to $2.25 billion within the fourth quarter, covering 30 months of dividend payouts, signaling its financial strength despite the market downturn.
Strategy also has no major debt due through 2027, meaning the corporate just isn’t under immediate pressure to repay loans and might not be forced to liquidate Bitcoin to satisfy its obligations within the short term.
Strategy CEO Phong Le told investors on an earnings call that there was no reason to panic in regards to the company's financial position and its Bitcoin strategy.
“I’m not nervous, we’re not nervous and no, we don’t have any problems.”
He noted that Strategy's enterprise value continues to be above its $45 billion in Bitcoin reserves and that its $8.2 billion in convertible notes represent only about 13% net debt, below most Standard & Poor's 500 firms.
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