Investors in Strategy Inc. were met with a staggering financial report on Thursday evening, revealing the severe consequences of the company’s concentrated bet on cryptocurrency. A massive net loss exceeding $12 billion for the fourth quarter has been directly attributed to the declining market value of Bitcoin. As co-founder Michael Saylor urges calm, shareholders are left questioning the viability of the firm’s core strategy in the face of an ongoing price slump.
Market Reaction Highlights Strategic Risk
The disparity between substantial paper losses and management’s unwavering confidence has triggered a sensitive response from the market. Often viewed as a direct proxy for Bitcoin investment, Strategy Inc.’s stock has plummeted more than 70% over the past year. It currently trades near €90.90, hovering close to its 52-week low. These latest figures underscore the extreme risk inherent in the company’s approach, which effectively functions as a leveraged wager on Bitcoin’s price trajectory. As long as cryptocurrency markets remain under pressure, these enormous accounting losses will continue to burden the balance sheet and cement the stock’s high volatility.
A $12.4 Billion Quarterly Loss Driven by Valuation Rules
The fourth-quarter 2025 results, released Thursday, present a dramatic picture. Strategy Inc. reported a net loss of $12.4 billion, or $42.93 per share. This contrasts sharply with the $670.8 million loss recorded in the same period the prior year.
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This precipitous decline is almost exclusively due to the accounting valuation of the company’s Bitcoin holdings. An operating loss of $17.4 billion was reported, which incorporates unrealized losses on these digital assets. Following “fair value” accounting rules, the portfolio had to be written down as cryptocurrency prices fell significantly. The core operational business now plays a negligible role in the financial statements from a numerical perspective. Revenue saw a modest 1.9% increase to $123.0 million, but this is completely overshadowed by the enormous fluctuations in the Bitcoin portfolio’s value.
Aggressive Accumulation Continues Unabated
Despite the stark red ink, Strategy Inc.’s leadership has not deviated from its chosen path. The company even leveraged market weakness to expand its position, purchasing an additional 41,002 Bitcoins in January 2026 alone. As of the reporting date of February 1, 2026, the corporate treasury holds a total of 713,502 Bitcoins.
To finance this aggressive accumulation, Strategy Inc. has tapped capital markets extensively. Throughout 2025, the firm raised $25.3 billion, making it the largest issuer of equity among U.S. publicly listed companies for the second consecutive year. The total cost basis for the entire Bitcoin reserve now stands at $54.26 billion.
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