Strategy (MSTR) has reported a staggering net loss of $12.4 billion for the fourth quarter of 2025. This significant decline is primarily attributed to the sharp decrease in Bitcoin’s value, which plummeted from approximately $120,000 at the beginning of October to around $89,000 by year-end. The crypto market continues to face challenges, culminating in Bitcoin’s recent crash to prices near $64,000 before the release of Strategy’s financial results.
Impact on Strategy’s Stock Performance
Following the announcement of its quarterly results, Strategy’s stock experienced a drastic fall of 17%. This marked one of the company’s poorest performances in recent years. However, the stock saw a modest rebound in after-hours trading.
Bitcoin Holdings and Financial Position
Under the leadership of Executive Chairman Michael Saylor, Strategy remains the largest corporate holder of Bitcoin. The company currently possesses 713,502 BTC, acquired at an average price of $76,052. This substantial investment reflects several billion dollars in Bitcoin purchases made since the end of the fourth quarter.
As of the close of 2025, Strategy’s cash reserves stood at $2.25 billion. This financial backing provides sufficient resources to cover dividends on its preferred stock and interest obligations on debt for approximately 2.5 years.
Looking Ahead
While the fourth-quarter results were anticipated, stakeholders are keen to hear insights from the upcoming earnings call. Scheduled for 5 pm ET, this event will feature comments from Saylor and his team regarding the company’s strategies in light of current market conditions.
- Net Loss: $12.4 billion in Q4 2025
- Bitcoin Price Drop: From $120,000 to approximately $89,000
- Recent Bitcoin Crash: Down to $64,000
- Stock Decrease: 17% drop post-announcement
- Total Bitcoin Holdings: 713,502 BTC
- Average Purchase Price: $76,052
- Cash Reserves: $2.25 billion
- Dividend Coverage Duration: 2.5 years
Strategy’s future will largely depend on the company’s ability to navigate through the tumultuous cryptocurrency landscape. Investors will be paying close attention to management’s insights and forecasts during the upcoming earnings call.
