The High-Stakes Gamble: Strategy Holds 713,502 BTC Despite $60,000 Market Slide.

 

Strategy Reports $12.4B Loss in Q4 2025 Amid Bitcoin Volatility; CEO Remains Undeterred

Strategy (formerly MicroStrategy), the software firm famously led by Michael Saylor and now a proxy for Bitcoin investment, reported a challenging fourth quarter for 2025. Due to a sharp decline in Bitcoin prices over the final three months of the year, the company posted a staggering net loss of $12.4 billion.

The World’s Largest Corporate Bitcoin Treasury

Despite the quarterly loss, Strategy continues to solidify its position as the largest public corporate holder of Bitcoin. As of February 1, 2026, the company’s holdings stand at:

• Total Holdings: 713,502 BTC

• Total Cost Basis: $54.26 billion

• Average Cost per BTC: $76,052

• 2025 BTC Yield: 22.8%

• Recent Activity: In January 2026 alone, the firm aggressively acquired an additional 41,002 BTC.

The "Stress Test" Scenario

Addressing concerns over the company's leveraged strategy, CFO Andrew Kang (and insights from the CEO) outlined a "worst-case scenario." If Bitcoin were to plummet 90% to roughly $8,000—an event described as "hard to imagine"—the value of their BTC reserves would align with their net debt. At that point, the company would be unable to cover its convertible notes using Bitcoin reserves alone and would need to consider restructuring, issuing more equity, or taking on additional loans.

However, management emphasized that their debt maturities are spread over the next five years, providing a significant buffer. "We are not concerned even with the current price fluctuations," the company stated.

Market Volatility and Liquidity

The disclosure comes as the crypto market experiences extreme turbulence. Bitcoin traded near $70,000 in early February before sliding to an intraday low of $60,000 on February 6, 2026. This volatility highlights the risks associated with a high-leverage treasury strategy.

Currently, Strategy maintains a cash reserve of approximately $2.3 billion, which is sufficient to cover interest payments on its outstanding bonds for the next 2.5 years.

• The $12.4 billion loss is largely "paper loss" or impairment charges under GAAP regulations, which require companies to record a decrease in the market value of digital assets even if they haven't actually been sold. Therefore, this loss doesn't reflect the company's actual lost "cash flow."

• "BTC Yield" is a figure devised by Michael Saylor to measure the accreditation of Bitcoin to shareholders. A yield of 22.8% in 2025 means the company can accumulate Bitcoin faster than the dilution caused by borrowing to purchase it.

• Analysts point out that the real concern is... It's not just the $8,000 price level, but also the level at which a margin call might occur on some loans. However, Strategy often uses unsecured convertible notes, which don't have margin calls, allowing companies to "hold through" severe market downturns better than average investors.

• The drop in Bitcoin price to $60,000 on February 6, 2026, was a crucial test, as it was significantly below the company's average cost basis ($76,052). If the price remained at this level for an extended period, the market might begin questioning the company's ability to refinance in the future.

 

ETF Myth vs. Reality: Decoding the $1.6 Billion Crypto Liquidation.