Strategy Reports $12.4B Q4 Loss as Bitcoin Price Crash Batters MSTR Stock

Strategy (formerly MicroStrategy) reported a massive net loss of $12.4 billion for the fourth quarter of 2025, largely driven by the sharp decline in the price of bitcoin. The company’s results reflect the volatility of the crypto market, as bitcoin fell from around $120,000 on October 1 to approximately $89,000 by the end of the year, significantly impacting the value of Strategy’s digital asset holdings.

The situation has worsened since the close of the quarter. In recent weeks, bitcoin prices have continued to slide, plunging to the $64,000 level on Thursday just ahead of the company’s earnings release. The steep drop triggered a sharp reaction in the market, with Strategy shares tumbling 17% during the regular trading session, marking one of the stock’s worst daily performances in years. The stock did manage a modest rebound in after-hours trading, offering limited relief to investors.

Led by Executive Chairman Michael Saylor, Strategy remains the world’s largest corporate holder of bitcoin. As of the end of the quarter, the company held 713,502 BTC, acquired at an average purchase price of $76,052. This figure includes several billion dollars’ worth of bitcoin bought after the fourth quarter ended, underscoring Strategy’s continued commitment to its bitcoin-focused strategy despite market turbulence.

From a liquidity standpoint, Strategy ended the year with $2.25 billion in cash. According to the company, this cash position is sufficient to cover approximately 2.5 years of dividend payments on its preferred stock, as well as ongoing interest obligations on its debt.

While the fourth-quarter loss was widely anticipated given bitcoin’s decline, investor attention is now turning to the earnings call scheduled for 5 p.m. ET. Market participants are eager to hear Michael Saylor and his team outline their plans, risk management approach, and long-term outlook amid continued volatility in the cryptocurrency market.