Core Insights - Strategy reported a significant fourth-quarter loss primarily due to a massive pullback in bitcoin value, marking one of the largest quarterly losses for a U.S. public company [2][3] Financial Performance - The company posted an operating loss of approximately $17.4 billion for the quarter, largely driven by unrealized losses on its bitcoin holdings [3][6] - The net loss attributable to common shareholders was $12.6 billion, a stark increase from a loss of about $671 million in the same quarter the previous year [3] - The company's stock price opened at around $120, closed near $107, and further declined to approximately $102 in after-hours trading, representing a decline of over 70% from the previous year [5] Bitcoin Market Impact - The results coincided with one of bitcoin's sharpest single-day drawdowns, with prices falling nearly 15% from approximately $73,100 to as low as $62,400 [4] - Continued weakness in bitcoin prices into early February suggested an additional $14 billion in unrealized losses, bringing total mark-to-market declines to around $31 billion since year-end [6] Bitcoin Holdings - Strategy remains the largest corporate holder of bitcoin, with 713,502 BTC reported on its balance sheet as of early February [7] - The average acquisition cost for bitcoin was around $76,000, resulting in an unrealized loss of over $9.2 billion, compared to more than $31 billion in unrealized gains just four months prior [8]

Core Viewpoint - The content emphasizes the importance of conducting personal due diligence and consulting with competent advisors before making any financial decisions, particularly in relation to investments in cryptocurrencies and CFDs [1]. Group 1 - The website provides general news, personal analysis, and third-party materials intended for educational and research purposes [1]. - It explicitly states that the information should not be interpreted as a recommendation or advice for investment actions [1]. - The accuracy and reliability of the information are not guaranteed, and users are cautioned against relying solely on the content provided [1]. Group 2 - The website discusses the complexities and high risks associated with cryptocurrencies and CFDs, highlighting the potential for significant financial loss [1]. - It encourages users to conduct their own research and fully understand the instruments and risks involved before making investment decisions [1].

Q4 2025 Financial Results February 5, 2026 Copyright © 2026 Strategy. All Rights Reserved. Strategy Q4 2025 Earnings Call Safe Harbor Statement FORWARD-LOOKING STATEMENTS Some of the information we provide in this presentation regarding our future expectations, plans, and prospects may constitute forward-looking statements. Actual results may differ materially from these forward- looking statements due to various important factors, including fluctuations in the price of Bitcoin and the risk factors discusse ...

Core Insights - The shares of the bitcoin-stockpiling company have experienced a significant decline since the peak of cryptocurrency prices in October [1] Company Summary - The company is involved in accumulating bitcoin, which has seen its stock value drop sharply following the all-time highs of crypto prices [1]

Core Viewpoint - The company reported a wider fourth-quarter loss due to a turbulent period for digital assets, leading to significant losses on its bitcoin holdings [1] Group 1 - The company is identified as the world's largest hoarder of bitcoin [1] - The losses recorded were attributed to the volatility in the digital asset market [1]

Bitcoin Holdings and Performance - The company holds 713,502 bitcoins with a total cost of $54.26 billion, averaging $76,052 per bitcoin, and achieved a BTC yield of 22.8% for FY2025[1][9]. - The average market price per bitcoin was approximately $83,740 as of January 30, 2026, reflecting a market value of $59.75 billion for the company's bitcoin holdings[1][10]. - The company utilizes key performance indicators (KPIs) such as Bitcoin Per Share (BPS), BTC Yield, BTC Gain, and BTC $ Gain to assess its bitcoin acquisition strategy[28]. - BPS represents the ratio of the company's bitcoin holdings to its Assumed Diluted Shares Outstanding, providing a baseline for assessing bitcoin acquisition performance[30]. - BTC Yield measures the percentage change in BPS over a period, helping investors understand the effectiveness of the company's bitcoin acquisition strategy[30]. - The company has adopted Accounting Standards Update No. 2023-08, requiring it to measure bitcoin at fair value, which may lead to unrealized gains or losses not reflected in its KPIs[32]. - The trading price of the company's class A common stock can deviate significantly from the market value of its bitcoin holdings, indicating that KPIs may not predict stock performance[31]. - The company has historically not paid dividends on its class A common stock, and presenting KPIs does not imply future dividend intentions[39]. Financial Performance - The company reported a net loss of $12.4 billion for Q4 2025, or $42.93 per diluted share, compared to a net loss of $670.8 million, or $3.03 per diluted share, for Q4 2024[1][11]. - Total revenues for Q4 2025 were $123.0 million, a 1.9% increase year-over-year, with subscription services revenues increasing by 62.1% to $51.8 million[1][11]. - The gross profit for Q4 2025 was $81.3 million, representing a gross margin of 66.1%, down from 71.7% in Q4 2024[1][11]. - Total revenues for the three months ended December 31, 2025, were $122.989 million, a slight increase from $120.697 million in the same period of 2024, while total revenues for the twelve months ended December 31, 2025, reached $477.233 million, compared to $463.456 million in 2024, reflecting a year-over-year growth of approximately 2%[44]. - Subscription services revenue for the three months ended December 31, 2025, was $51.758 million, up 62% from $31.931 million in the same period of 2024, and for the twelve months, it increased to $175.657 million from $106.776 million, representing a growth of 65%[44]. - The net loss for the three months ended December 31, 2025, was $12.437 million, compared to a net loss of $670,811 in the same period of 2024, while the net loss for the twelve months was $3.848 million, compared to $1.167 million in 2024[44]. - Basic loss per share for the three months ended December 31, 2025, was $(42.93), significantly higher than $(3.03) in the same period of 2024, and for the twelve months, it was $(15.23) compared to $(6.06) in 2024[44]. Asset and Liability Management - Total current assets as of December 31, 2025, were $2.564 billion, a substantial increase from $252.324 million as of December 31, 2024, primarily driven by an increase in cash and cash equivalents[47]. - Digital assets held by the company increased to $58.854 billion as of December 31, 2025, compared to $23.909 billion as of December 31, 2024, indicating a significant growth in digital asset holdings[47]. - Total liabilities as of December 31, 2025, were $10.598 billion, up from $7.614 billion in 2024, reflecting an increase in long-term debt and other liabilities[47]. - The company reported total operating expenses of $17.527 billion for the three months ended December 31, 2025, compared to $1.103 billion in the same period of 2024, largely due to unrealized losses on digital assets[44]. - The company’s total stockholders' equity increased to $44.123 billion as of December 31, 2025, from $18.230 billion in 2024, reflecting strong capital growth despite net losses[47]. Digital Asset Transactions - The company purchased a total of $7.66 billion in digital assets in Q1 2025, resulting in a balance of $35.63 billion by March 31, 2025[49]. - By June 30, 2025, the balance of digital assets increased to approximately $42.40 billion, following additional purchases of $6.77 billion in Q2 2025[49]. - The company reported an unrealized gain on digital assets of $14.05 billion by June 30, 2025, indicating significant appreciation in asset value[49]. - Digital asset purchases in Q3 2025 amounted to $4.95 billion, leading to a balance of approximately $47.35 billion by September 30, 2025[49]. - The company experienced an unrealized gain of $3.89 billion on digital assets in Q3 2025, contributing to overall asset growth[49]. - By December 31, 2025, the total carrying value of digital assets reached approximately $50.44 billion, with a total unrealized gain of $58.85 billion[49]. - In Q4 2025, the company purchased $3.08 billion in digital assets, funded by various public offerings and stock sales[49]. - The company utilized $4.37 billion from its class A common stock offering to purchase bitcoin in Q1 2025, demonstrating strong capital mobilization[49]. - Cumulative effect upon adoption of ASU 2023-08 resulted in a significant adjustment to the carrying value of digital assets, increasing it to $41.79 billion[49]. Capital Raising and Financial Strategy - In FY2025, the company raised $25.3 billion, making it the largest equity issuer in the U.S., representing approximately 8% of total U.S. equity issuance[1][3]. - The company executed five preferred equity IPOs in FY2025, raising $5.5 billion in gross proceeds[1][4]. - The company established a $2.25 billion USD Reserve, providing approximately 2.5 years of coverage for dividends and interest obligations[2][15]. - The flagship Digital Credit instrument, STRC, has scaled to $3.4 billion with a current dividend rate of 11.25%[2][3]. - The company expects ROC distributions to continue for the foreseeable future, estimated at ten years or more[2][21]. Future Outlook and Risks - Future performance may be influenced by various factors, including fluctuations in bitcoin prices and the availability of favorable financing[40]. - The company may experience increases in Assumed Diluted Shares Outstanding without corresponding increases in bitcoin holdings due to dividend payments on preferred stock[36]. - Forward-looking statements include risks such as market price fluctuations of bitcoin and changes in accounting treatment, which could materially affect actual results[42]. - Strategy Inc is the world's first and largest Bitcoin Treasury Company, focusing on financial innovation strategies to generate value from bitcoin holdings[24].

Strategy (MSTR) reported a net loss of $12.4 billion in the fourth quarter of 2025 as the price of bitcoin (BTC) tumbled from about $120,000 on October 1 to roughly $89,000 to close the year. Things have only gotten worse since, with the price of bitcoin falling hard in recent weeks and finally crashing on Thursday to the $64,000 level ahead of the Strategy results. Strategy shares closed the session down 17% in one of their worst performances in years. The stock's up modestly in after hours trade. Led ...

Strategy ( NASDAQ: MSTR ) now owns 713,502 Bitcoin ( CRYPTO: BTC ) —roughly 3.4% of all Bitcoin that will ever exist. ...

Company Overview - Strategy, previously known as MicroStrategy, is the world's largest Bitcoin treasury firm, based in Tysons Corner, Virginia. Founded in 1989, the company initially focused on enterprise analytics software before pivoting to Bitcoin as its main treasury reserve asset, accumulating significant holdings [6]. Bitcoin Market Dynamics - Bitcoin is experiencing significant volatility due to geopolitical tensions and macroeconomic uncertainty, leading to a decline in its stability and the fading of its "digital gold" status [1]. - Bitcoin prices are nearing the critical support level of $70,000, with analysts suggesting that a drop below this threshold could indicate further declines for the cryptocurrency [2]. - The post-election surge of Bitcoin to over $126,000 has prompted profit-taking among investors, contributing to the current downward trend [2]. Strategy's Position and Actions - Strategy remains committed to Bitcoin, having acquired 855 Bitcoins on February 2 at an average cost of $87,974, and holds a total of 713,502 Bitcoins as of February 5 [3]. - The company's treasury model relies on its shares trading at a premium to its Bitcoin holdings, but the current "crypto winter" has put this flexibility under pressure, although it is not in significant financial distress [4]. - The diluted share count will be a key metric to watch in Strategy's upcoming fourth-quarter earnings release, which is expected to provide insights into its financial health and strategy moving forward [4].

Core Insights - Turbulence in the cryptocurrency market is negatively impacting shares of companies that hold bitcoin and other digital assets on their balance sheets, raising concerns about potential broader strains in the financial sector [1] Company Impact - Companies with significant holdings in cryptocurrencies are experiencing declines in their stock prices due to the volatility in the crypto market [1] - The market instability is leading to increased scrutiny of companies' financial health and their exposure to digital assets [1] Industry Concerns - The ongoing turbulence in the cryptocurrency market may indicate deeper issues within the financial ecosystem, potentially affecting investor confidence and market stability [1] - There are fears that the decline in cryptocurrency values could lead to a ripple effect across various sectors that are interconnected with digital assets [1]