Strategy, a company known for its significant Bitcoin investments, reported a substantial net loss of $12.4 billion in the fourth quarter of 2025. This downturn was largely attributed to Bitcoin's 22% price drop during the same period. Bitcoin (BTC) had surged to a high of $126,000 in early October but saw a steep decline by December 31, falling below $88,500. As of now, Bitcoin's value has decreased 30% this year, standing at $64,500, which is below Strategy’s average purchase price of $76,052 per Bitcoin.
Despite the financial setback, Strategy reported an increase in revenues, up 1.9% year-on-year to $123 million, thanks in part to the growth of its business intelligence division. However, the recent downturn in Bitcoin's price led to a 17% drop in Strategy’s share value, closing at $107 on Thursday, as indicated by data from Google Finance.
The decline in Bitcoin's value pushed it to a low of $62,500 on Thursday, impacting Strategy's holdings of 713,502 Bitcoins and resulting in a 17.5% decrease in their value.
Financial Resilience Despite Losses
Andrew Kang, Strategy’s chief financial officer, reassured stakeholders by stating that the company’s financial structure remains robust and more resilient than ever. He highlighted that Strategy has fortified its position with a substantial Bitcoin reserve and a shift towards Digital Credit, aligning with its long-term Bitcoin-focused strategy.
The firm strengthened its liquidity by increasing its cash reserves to $2.25 billion in the fourth quarter, which is sufficient to cover 30 months of dividend distributions. This move underscores Strategy's financial stability, even amidst a challenging market environment. Additionally, Strategy faces no significant debt maturities until 2027, reducing the pressure to sell Bitcoin to cover debts in the near future.
Chief Executive Officer Phong Le addressed investors, maintaining confidence in the company’s financial health and its strategic approach to Bitcoin. "I’m not worried, we’re not worried, and no, we’re not having issues," Le assured. He emphasized that the enterprise value remains above its $45 billion Bitcoin reserve, and the company’s convertible debt accounts for only about 13% net leverage, which is lower than most firms in the S&P 500.
This report comes amidst broader geopolitical discussions about cryptocurrency, with notable statements from US Treasury Secretary Bessent regarding Bitcoin’s future. Meanwhile, the company’s strategy and financial resilience continue to be closely watched by investors and market analysts alike.