Strategy posts $12.4b Q4 loss on bitcoin price drop

Strategy reported a US$12.4 billion net loss in Q4 2025, driven by a drop in bitcoin’s price, which fell from about US$120,000 to US$89,000 during the quarter.

The company, which is the largest corporate holder of bitcoin with 713,502 BTC purchased at an average price of US$76,052, saw its shares drop 17% on February 5, as bitcoin’s price declined further to around US$64,000.

Despite the loss, Strategy ended the year with US$2.3 billion in cash, enough to cover about 2.5 years of dividends on its preferred stock and interest payments.

The recent bitcoin price movements have significantly impacted Strategy’s financial results and stock performance.

🔗 Source: CoinDesk

🧠 Food for thought

Implications, context, and why it matters.

Accounting loss clouds Strategy’s bitcoin accumulation goal

The US$12.4 billion loss comes mainly from a non-cash fair-value accounting adjustment on bitcoin holdings. It tracks bitcoin’s price swings rather than operating cash shortfalls 1.
Management tracks progress less through GAAP (Generally Accepted Accounting Principles) earnings and more through Bitcoin per Share (BPS). It seeks to raise BPS by issuing stock or debt to buy more bitcoin 2.
For 2025, Strategy set a 30% “BTC Yield,” which it defines as BPS growth. This target does not line up with the quarter-to-quarter earnings noise from bitcoin price moves 2.
The plan holds while Strategy can sell equity above its disclosed mNAV framework, a multiple of “Bitcoin NAV,” meaning the market value of its bitcoin holdings minus liabilities. It then puts proceeds into bitcoin to lift holdings per assumed diluted share 2.

Strategy is testing a new corporate finance approach

Strategy has moved from a software firm that holds bitcoin to what it calls a “Bitcoin Treasury Company.” It uses bitcoin reserves plus capital markets activity to offer investors different exposures 2.
Its lineup includes common stock for bitcoin-linked equity exposure, convertible bonds (debt that can convert into stock), and several series of preferred stock (shares that typically pay dividends and rank ahead of common stock in payouts) 2.
It also issued STRC, a variable-rate preferred stock. The company says it aims for price stability plus short-duration, high-yield exposure for a new class of investors 2.
Quarterly swings in results and share price pressure-test this structure. A durable run could give other firms a template for building layered capital structures tied to alternative assets.