Strategy (MSTR) reported a staggering net loss of $12.4 billion in the final quarter of 2025, largely due to bitcoin’s price plummeting from approximately $120,000 on October 1st to around $89,000 by year-end.
The situation has deteriorated further as bitcoin’s value sharply declined in recent weeks, culminating in a crash to about $64,000 just before Strategy released its earnings. The company’s stock suffered one of its worst days in years, closing down 17%, though it showed slight gains during after-hours trading.
Under the leadership of Executive Chairman Michael Saylor, Strategy remains the largest corporate holder of bitcoin with a total holding of 713,502 BTC. These bitcoins were acquired at an average cost of $76,052 each — including billions spent after the fourth quarter ended.
At year-end, Strategy had cash reserves amounting to $2.25 billion. This liquidity provides enough coverage for preferred stock dividends and interest payments on debt for approximately two and a half years.
While the disappointing quarterly results were anticipated by many investors, attention now turns to the upcoming earnings call scheduled for 5 pm ET where Saylor and his team are expected to discuss their strategy moving forward amid current market challenges.
For further details: Strategy faced a $6.5 billion loss on BTC holdings but continues trading above its asset value