Strategy, the largest corporate holder of Bitcoin, saw its unrealized loss widen to $10.16 billion after BTC briefly touched $60,000. At the same time, the company reported a $12.4 billion net loss for the fourth quarter of 2025, and MSTR dropped 17% in a single session, placing it among the day’s biggest decliners in the U.S. tech sector.
Bitcoin pullback sharply increased paper losses
According to the report, Strategy currently holds 713,502 BTC, acquired at a total cost of about $45.7 billion, with an average purchase price of roughly $76,052 per coin. Once Bitcoin fell to $60,000, the gap between market value and cost basis widened quickly. For a company built around a large Bitcoin treasury, moves in BTC price can hit reported earnings hard and spill over into the stock price in short order.
Q4 results reflected both accounting pressure and business weakness
Strategy posted a $12.4 billion net loss in the fourth quarter of 2025, with earnings per share at -$42.93, well below analyst expectations. The report said the loss came mainly from two sources: fair-value markdowns on its Bitcoin holdings under the new accounting rules, which require price swings to flow through the income statement, and a continued decline in the company’s software business, where revenue fell about 15% year over year. One was driven by accounting treatment. The other pointed to pressure in the core operating business.
Debt concerns remain, though management says liquidity is intact
Another issue drawing attention is Strategy’s debt structure, which includes several tranches of convertible notes. If Bitcoin falls more, the market worries that debt pressure could rise and eventually force sales of part of the company’s BTC holdings. CFO Andrew Kang said cash reserves had increased to $2.25 billion, enough to cover roughly 30 months of preferred dividends and interest payments. He also said the company’s major debt maturities are concentrated after 2027, leaving no near-term liquidity stress and no need to sell Bitcoin to meet repayment needs.
JPMorgan flagged $50,000, while Michael Saylor posted “HODL”
JPMorgan analysts said in a recent report that if Bitcoin falls below $50,000, Strategy’s debt burden would rise sharply. The bank added that while current cash flow still covers interest expense, ongoing losses could limit the company’s ability to refinance. Michael Saylor’s public response on social media was brief: “HODL”.