On Thursday, Michael Saylor’s Bitcoin treasury firm Strategy (Nasdaq: MSTR) reported its fourth-quarter earnings amid a precarious backdrop, as BTC fell to $64,000 amid a sharp market-wide downturn.
The company reported a $12.4 billion net loss for the final quarter of the 2025 fiscal year, and is facing an unrealized loss of nearly $9 billion on its 713,502 bitcoins, currently valued at $45.4 billion. The software developer-turned-digital asset treasury firm also suffered a $7.5 billion paper loss as BTC price dropped well below its average cost basis of $76,000 per coin this week.
MSTR Hits Lowest Price Since Aug 2024 as Bitcoin Erases Post‑Trump Gains
During the earnings call following the release of its Q4 2025 results, Strategy co-founder Michael Saylor, CEO Phong Le, and chief financial officer Andrew Kang all told investors that the firm is in the bitcoin accumulation game for the long term.
“It’s important to emphasize that our strategy is built for the long term. It’s built to withstand short-term price volatility, even short-term extreme conditions like we’re seeing today, and importantly, even in a volatile environment, we continue to execute,” said Kand at the earnings call.
In the fourth quarter, bitcoin’s price tumbled from a peak of $126,080 on October 1 to roughly $89,000 at the end of December. However, things have only gotten worse since, with BTC trading at $64,000 on Thursday afternoon in New York after dropping 13% within 24 hours. The apex crypto is down nearly 49% from its all-time high.
The company’s Nasdaq-listed MSTR common stock closed yesterday’s session down 17%, marking one of its worst daily performances in years. This has erased the stock’s year-to-date gains and brought it back near levels last observed in August 2024. MSTR has plummeted by around 71% over the past six months.
Despite the volatility, Strategy emphasized its long-term commitment to bitcoin-backed credit. Phong Le noted during the earnings call that the company raised $25.3 billion in capital last year to advance its digital asset treasury strategy. It reportedly bought 41,002 BTC, worth $2.65 billion, in January 2026 alone. Throughout the three months ended December 31, the company added around 35,000 BTC to its coffers.
Strategy’s USD reserves now stand at $2.52 billion, which would support about 30 months of dividend coverage on its preferred stock and interest on debt. Meanwhile, its bitcoin-pegged STRC preferred has reached $3.4 billion in issuance with an adjustable 11.25% dividend rate designed to maintain price stability.
Investors Worry Strategy May Sell Bitcoin to Cover Losses
Investors buy Strategy’s stock and other BTC yield offerings to get exposure to the alpha cryptocurrency. But when bitcoin’s price dips, MSTR, which is designed to provide supercharged gains by outperforming the asset it is pegged to, also takes a hit.
Saylor, known for his maximalist attitude towards bitcoin, posted the crypto lingo “HODL” (hold on for dear life) on X before the release of Strategy’s earnings call. The phrase has become a rallying cry for hardcore crypto enthusiasts.
Market observers now fear that bitcoin could come under further strain if Strategy decides to sell its holdings, which Saylor acknowledges as a future possibility.
“Strategy has built a digital fortress anchored by 713,502 Bitcoin, and our shift to digital credit, which aligns with our indefinite Bitcoin horizon,” said Saylor in a statement to shareholders.
Meanwhile, the company’s enterprise value is closing in on its bitcoin holdings, yielding a so-called mNAV of 1.1. Strategy takes into account its debt and cash holdings to measure the metric. The firm has been valued at a discount to its BTC since late November. As that premium has vanished over the past year, it has become increasingly difficult for the company to increase the amount of bitcoin it owns per share by issuing common stock and preferred shares.
At the time of writing, Bitcoin (BTC) is trading at $64,466 – down 8.92% in 24 hours. Strategy (MSTR) closed the Thursday session at $106.99 – down 11.44% on the day.
