Strategy (MSTR) Stock Falls 17% as Bitcoin Crash Drives $12.4 Billion Q4 Loss

TLDR

• Strategy reported a $12.4 billion net loss in Q4 2025 as Bitcoin crashed 22% from $126,000 to under $88,500 during the quarter
• The company’s 713,502 Bitcoin holdings are now down 17.5% with an average purchase price of $76,052 versus current Bitcoin price of $64,500
• Strategy shares plunged 17% on Thursday to $107 as Bitcoin tumbled to $62,500 before recovering slightly in after-hours trading
• The company holds $2.25 billion in cash covering 30 months of preferred stock dividends with no major debt due until 2027
• CFO Andrew Kang and CEO Phong Le emphasized the company’s strong financial position with only 13% net leverage compared to most S&P 500 firms

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Strategy posted a staggering $12.4 billion net loss in the fourth quarter of 2025. The massive loss came as Bitcoin crashed from a peak of $126,000 in early October to roughly $88,500 by December 31.

Strategy Inc, MSTR

The pain continued into 2025. Bitcoin has dropped another 30% year-to-date to $64,500, well below Strategy’s average cost per Bitcoin of $76,052.

Strategy shares closed down 17% on Thursday to $107. The drop came as Bitcoin hit a low of $62,500 during the session. Shares recovered modestly in after-hours trading.

The company now holds 713,502 Bitcoin worth roughly $46 billion at current prices. That’s a paper loss of 17.5% on its total holdings based on the average purchase price.

Despite the carnage, Strategy managed to grow its core business intelligence revenues by 1.9% year-over-year to $123 million in Q4. But that was a drop in the bucket compared to the Bitcoin-driven losses.

Management Dismisses Panic

Le noted that Strategy’s enterprise value still exceeds its $45 billion Bitcoin reserve. He emphasized that the company’s $8.2 billion in convertible debt represents only 13% net leverage.

That’s below the leverage ratio of most S&P 500 companies. Le used this to push back against concerns about the company’s debt load.

Cash Position Provides Buffer

Strategy ended Q4 with $2.25 billion in cash. That amount covers 30 months of dividend payments on its preferred stock plus interest on debt.

The company has no major debt maturing until 2027. This means Strategy isn’t facing immediate pressure to sell Bitcoin to meet obligations.

This breathing room matters as Bitcoin continues to slide. The company isn’t forced into liquidating holdings at unfavorable prices to cover near-term debt payments.

The cash buffer and distant debt maturities give Strategy time to ride out the current downturn. Executive Chairman Michael Saylor has repeatedly stated his intention to hold Bitcoin indefinitely.

Strategy has been accumulating Bitcoin aggressively. The company purchased several billion dollars worth of additional Bitcoin after the fourth quarter ended.

The average purchase price of $76,052 includes these recent buys. That average is now roughly $11,500 above the current Bitcoin price of $64,500.

Investors will be watching the 5 PM ET earnings call closely. They want to hear Saylor and the management team’s plans given the current market conditions and the company’s underwater position on its Bitcoin holdings.

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