Software firm turned Bitcoin investment company Strategy reported a massive $12.4 billion net loss for the fourth quarter of 2025. The loss was directly tied to a 22% decline in Bitcoin’s price during that period. Despite the financial hit, executives maintain confidence in their Bitcoin-centric strategy, citing strong cash reserves and minimal debt.
The Bitcoin-heavy firm Strategy reported a staggering $12.4 billion net loss in Q4 2025. The loss was largely driven by bitcoin’s 22% decline over the quarter.
Bitcoin peaked near $126,000 in early October before sliding below $88,500 by year’s end. The price now sits below Strategy’s average purchase cost of approximately $76,052 per BTC.
The company holds 713,502 BTC, leaving it down about 17.5% on its total crypto position. The stock of Strategy closed down 17% at $107 as investors showed panic about the situation.
The main operations of the company proved to have slight strength. Q4 revenues rose 1.9% year-on-year to $123 million, supported by its business intelligence division.
Chief Financial Officer Andrew Kang stated the company has achieved its strongest capital structure. He described Strategy’s holdings as a “digital fortress” which depends on BTC and Digital Credit.
The company reached $2.25 billion in cash reserves during Q4, enabling it to sustain dividend payments for approximately two and a half years. CEO Phong Le reinforced this point, telling investors there is no cause for panic.
He noted that Strategy’s enterprise value remains above its $45 billion BTC reserve. The company maintains a net leverage of 13%, which falls below typical debt levels of most S&P 500 companies.
