New York, Feb 5, 2026, 16:38 EST — After-hours
- Strategy shares fell 17% in late trading, following another decline in bitcoin
- The company posted a quarterly net loss of $12.4 billion, driven mainly by bitcoin mark-to-market fluctuations
- Investors are tuning in to a 5 p.m. ET webcast, seeking insights on funding strategies and how quickly future purchases might roll out
Strategy Inc shares dropped 17% to $106.99 in after-hours trading Thursday, dragged down by another steep fall in bitcoin. The cryptocurrency slid about 13%, hovering near $63,460, weighing on crypto-related stocks once more.
This matters because Strategy has emerged as one of the top U.S. stock proxies for bitcoin, with its link growing stronger as the company loaded up on the token. When bitcoin falters, Strategy’s stock tends to swing even more sharply.
Investors are now focused on how long the company can continue raising funds if the crypto downturn persists. The real concern isn’t software revenue, but rather how long the balance sheet can hold up.
Strategy reported a fourth-quarter net loss of $12.4 billion, including an operating loss of $17.4 billion driven entirely by $17.4 billion in unrealized losses on digital assets under fair value accounting. CEO Phong Le highlighted that the company raised $25.3 billion in 2025 and added 41,002 bitcoins in January. Executive Chairman Michael Saylor described their bitcoin holdings as a “digital fortress.” (Strategy)
The company held 713,502 bitcoins as of Feb. 1, with a cost basis of $54.26 billion, or $76,052 per coin, according to Reuters. Strategy shares dropped roughly 47.5% in 2025, compared to a 6.4% decline in bitcoin, highlighting the stock’s leveraged exposure to the crypto asset. (Reuters)
Fair value accounting requires the company to mark its bitcoin holdings to market every quarter, pushing any paper gains or losses straight through earnings. This can cause reported results to fluctuate wildly, even when no sales occur.
On Thursday, Strategy’s reported $123 million in quarterly revenue barely registered. Instead, attention fixated on bitcoin’s trajectory and how funding was unfolding.
Crypto-linked stocks slipped across the board as Strategy dropped. Coinbase fell roughly 13%, with miners Marathon Digital and Riot Platforms sliding about 18% and 15%, respectively, in late trading.
On the Street, Canaccord Genuity’s Joseph Vafi slashed his price target for Strategy to $185 from $474 but held firm on a buy rating, according to GuruFocus. (GuruFocus)
The risk scenario remains largely the same: a further drop in bitcoin would worsen mark-to-market losses and might limit Strategy’s chances to secure new funding on favorable terms. Should bitcoin hold steady, the strain on earnings and financing could lighten just as fast.
Strategy’s webcast kicks off around 5 p.m. ET. Investors will be tuned in, watching closely for any changes in reserve strategies, plans for raising capital, and the timing of upcoming bitcoin buys ahead of U.S. trading reopening Friday.
