New York, Feb 6, 2026, 01:22 (EST)
- Strategy reported a $12.4 billion net loss in the fourth quarter, dragged down by the plunge in bitcoin weighing on its asset values
- The company reported holding 713,502 bitcoins as of Feb. 1, with an average purchase price of $76,052 per coin
- Executives stood by the long-term plan despite sharp swings in the stock and crypto markets
Strategy, the bitcoin-focused company that used to be MicroStrategy, posted a $12.4 billion net loss for Q4, hit hard by the sharp plunge in crypto prices.
The numbers have gained new weight as accounting changes now cause bitcoin’s daily swings to impact reported earnings more sharply, ramping up volatility for firms holding crypto as a treasury asset. Investors are reevaluating the trade amid bitcoin’s pullback and persistent volatility in funding costs.
Bitcoin hovered near $63,140 as Strategy shares dipped in after-hours, Reuters reported. Executive chairman Michael Saylor told investors, “The actions by big finance, the actions by the big banks and the actions by the financial regulators are the fundamentals.” https://www.reuters.com/business/saylor-led-strategys-quarterly-losses-widen-bitcoin-faces-another-reckoning-2026-02-05/
Strategy reported holding 713,502 bitcoins as of Feb. 1, at a total cost of $54.26 billion, averaging $76,052 per bitcoin. President and CEO Phong Le revealed the company raised $25.3 billion in capital during 2025 and boosted its holdings, including a purchase of 41,002 bitcoins in January.
Strategy reported a $17.4 billion operating loss, which included an unrealized digital asset loss of the same amount. Revenue came in at $123.0 million. The company closed 2025 with $2.3 billion in cash and equivalents. CFO Andrew Kang highlighted a $2.25 billion “USD Reserve” set aside to cover dividends and interest for more than two years. https://www.businesswire.com/news/home/20260205284207/en/Strategy-Announces-Fourth-Quarter-2025-Financial-Results-Holds-713502-BTC
CoinDesk reported that Strategy’s loss followed a steep bitcoin decline during the quarter. The stock plunged 17% on Thursday, tracking bitcoin’s slide toward the mid-$60,000s.
Bitcoin’s decline wiped out gains from the post-election bounce, the Financial Times reported, with risk assets falling and leveraged crypto bets being liquidated.
The selloff dragged down other crypto-linked stocks too. Coinbase and Robinhood took hits in the same wave as traders pulled back from the sector.
But the situation works both ways. Should bitcoin continue to drop and Strategy’s equity value slide toward—or even below—the market worth of its bitcoin holdings, raising new funds could become tougher, undermining the plan that depends on selling stock and other securities to acquire more bitcoin.
MarketWatch highlighted that Strategy’s stance of “don’t ever sell your bitcoin” is under pressure as its stock declines, noting the premium investors previously paid for its bitcoin exposure is narrowing. https://www.marketwatch.com/story/strategys-sinking-stock-puts-the-policy-of-dont-ever-sell-your-bitcoin-to-the-test-fde478ea
Strategy has spent years growing its bitcoin holdings using a blend of operating cash, debt, and equity issuance, making its shares a volatile stand-in for the cryptocurrency. It’s now also offering preferred stock and various other instruments linked to its “bitcoin treasury” approach.
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