Strategy Reports $12.4B Q4 Loss as Bitcoin Falls Below Cost Basis

Strategy (formerly MicroStrategy) reported a $12.4 billion net loss for the fourth quarter of 2025, driven largely by mark-to-market declines in its Bitcoin holdings as the cryptocurrency’s price weakened during the period ^[1][6]. The company said the dip coincided with Bitcoin briefly slipping below $60,000, which pushed its stash beneath the cumulative cost basis for the first time since 2023 and erased gains from last year’s rally ^[1].

The earnings release triggered a sharp market reaction: Strategy’s NASDAQ-listed shares fell roughly 17% after the results were published, extending a sell-off in the stock following the reported losses ^[2][5].

Company disclosures and market reporting highlighted the scale of the paper losses: coverage noted the firm’s Bitcoin treasury — reported at about 713,000 BTC in some accounts — was deeply underwater, with unrealized losses measured in the tens of billions of dollars as BTC slid toward $60,000 ^[5][4]. Strategy told investors that Bitcoin would need to fall to around $8,000 before its holdings would no longer cover the company’s net debt, according to reporting on the investor update ^[3].

While the crypto holdings drove the headline loss, Strategy’s software business remained relatively stable with reported revenue of about $123 million for the quarter, and the company retained a cash reserve that observers said could provide short-term liquidity ^[6][5].

The results underscore the volatility risk of Strategy’s Bitcoin-centric treasury model: substantial mark-to-market swings in BTC can produce large reported losses even as the company continues its core software operations ^[1][6].