Strategy Adds 1,287 Bitcoin as $17.4B Paper Loss Looms

Strategy increased its Bitcoin and cash reserves in early January, adding to its balance sheet while still carrying a large unrealized loss from late 2025 digital asset price swings, according to company disclosures.

The company said it acquired 1,287 Bitcoin, lifting its total Bitcoin reserve to 673,783 BTC. At the same time, Strategy raised its U.S. dollar reserve by $62 million, bringing total cash holdings to $2.25 billion. The update was disclosed in a Jan. 5 press release and detailed in a Form 8-K filing.

Strategy expands Bitcoin and cash reserves

Strategy said the latest Bitcoin purchase formed part of its ongoing treasury strategy, which centers on holding Bitcoin as a primary reserve asset. Following the acquisition, the firm now controls one of the largest corporate Bitcoin positions globally, valued in the tens of billions of dollars based on prevailing market prices.

Alongside the Bitcoin increase, Strategy strengthened its liquidity position. The company reported that its USD reserve rose to $2.25 billion, reflecting additional capital raised and retained cash. This buffer supports operating needs, debt servicing, and flexibility during periods of market volatility.

The disclosure did not specify the average purchase price of the newly acquired Bitcoin. However, the filing confirmed that Strategy continues to use a mix of cash resources and capital market activity to fund its digital asset strategy.

Q4 unrealized losses highlight volatility

The balance sheet expansion comes after Strategy reported a significant paper loss tied to Bitcoin price movements late last year. During the fourth quarter, the company recorded an unrealized loss of $17.4 billion on its digital asset holdings, according to prior financial updates linked to its year end reporting.

That loss reflected Bitcoin’s pullback during the final months of 2025, rather than any asset sales. Strategy did not reduce its Bitcoin position during that period and continued to classify the losses as unrealized, meaning they did not impact cash flow.

Michael Saylor, the company’s co founder and executive chairman, has repeatedly said Strategy views Bitcoin as a long term store of value despite short term price swings. The latest January filings show that approach remains unchanged, with the firm adding to both its Bitcoin and cash reserves even after a volatile quarter for digital assets.