Emre Yumlu 
The sharp downturn in Bitcoin prices has had a pronounced impact on Strategy (MSTR), one of the most aggressive corporate holders of Bitcoin. In the fourth quarter of 2025, the company reported a net loss of $12.4 billion, a result largely driven by Bitcoin’s 22% decline during the quarter. Despite the headline loss, Strategy’s leadership maintains that the company’s financial foundation remains intact.
Bitcoin Price Decline and Portfolio Pressure
Bitcoin reached a cycle peak of $126,000 in early October before entering a steep correction. By the end of the quarter on December 31, the price had fallen below $88,500. The weakness extended into early 2026, with Bitcoin down roughly 30% year-to-date and trading near $64,500. This level sits well below Strategy’s average acquisition cost of $76,052 per Bitcoin.
At its lowest point, Bitcoin briefly touched $62,500, pushing Strategy’s unrealized loss on its 713,502 BTC holdings to approximately 17.5%. Given the company’s substantial exposure, even modest price movements have an outsized effect on its balance sheet.
Stock Reaction and Operating Performance
The sell-off in Bitcoin also weighed heavily on Strategy’s equity performance. Shares of MSTR closed 17% lower on the day of the announcement, ending at $107. However, the company’s operating business showed relative stability. Fourth-quarter revenue rose 1.9% year-on-year to $123 million, supported primarily by its business intelligence segment, which continues to generate consistent cash flow.
Management Emphasizes Financial Resilience
Chief Financial Officer Andrew Kang described Strategy’s capital structure as stronger and more resilient than ever. He highlighted that the company’s long-term Bitcoin strategy, anchored by its 713,502 BTC holdings and a shift toward digital credit, reflects an indefinite investment horizon rather than short-term speculation.
Liquidity also improved during the quarter, with cash reserves increasing to $2.25 billion. This level is sufficient to cover approximately 30 months of dividend obligations. Importantly, Strategy faces no major debt maturities before 2027, reducing near-term refinancing or forced liquidation risk.
Chief Executive Officer Phong Le echoed this confidence, stating there is no cause for concern regarding the firm’s financial position or Bitcoin strategy. He noted that Strategy’s enterprise value remains above its $45 billion Bitcoin reserve and that its $8.2 billion in convertible debt represents only about 13% net leverage—well below levels typical for many S&P 500 companies.
Overall, while short-term volatility has led to significant accounting losses, Strategy continues to position itself firmly around a long-term Bitcoin thesis.
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