Strategy, the Bitcoin-heavy firm formerly known as MicroStrategy, reported steep financial losses as cryptocurrency prices plunged below the company’s average acquisitionStrategy, the Bitcoin-heavy firm formerly known as MicroStrategy, reported steep financial losses as cryptocurrency prices plunged below the company’s average acquisition

Michael Saylor’s Strategy Sees $4.3B BTC Loss

2026/02/07 04:42
3 min read

Strategy, the Bitcoin-heavy firm formerly known as MicroStrategy, reported steep financial losses as cryptocurrency prices plunged below the company’s average acquisition cost.

Key Takeaways

  • Strategy reported a $12.4 billion Q4 net loss driven by a sharp decline in Bitcoin prices.
  • The company now holds 713,502 BTC with an average purchase price of $76,052 per coin.
  • Unrealized losses exceed $4.3 billion, and the firm faces balance sheet strain if the downturn continues.
  • Strategy’s stock (MSTR) has dropped over 70% from its 52-week high, reaching 16-month lows.

What Happened?

Michael Saylor’s company Strategy took a major hit in the fourth quarter of 2025, posting a $12.4 billion net loss. This came as Bitcoin fell sharply from its 2025 highs, dipping below $70,000 and even under Strategy’s average purchase cost. The decline triggered massive unrealized impairments and sent the firm’s stock price tumbling, raising concerns about its highly leveraged Bitcoin strategy.

Strategy’s Losses Mount as Bitcoin Slips

Strategy’s latest earnings report underscores the risk of using Bitcoin as a corporate treasury asset. As of February 1, the firm held 713,502 BTC, acquired at a total cost of $54.26 billion. But with Bitcoin’s price hovering around $70,000, the company is now sitting on over $4.3 billion in unrealized losses, according to data from SaylorTracker.

While this may seem like a “paper loss,” the pressure is real. The firm also reported:

  • $17.4 billion in operating losses, most of it linked to unrealized digital asset impairments.
  • Revenue of $123 million in Q4.
  • $2.3 billion in cash and equivalents, with a $2.25 billion reserve earmarked for dividends and interest.
  • Convertible debt totaling $8.2 billion, maturing starting in 2027.

Credit analysts warn that if Bitcoin’s decline deepens or persists, it could strain Strategy’s balance sheet and limit refinancing options.

Stock Takes a Hit

Strategy’s share price (MSTR) plunged over 70% from its peak, now trading at its lowest level in 16 months. The stock’s decline mirrors Bitcoin’s performance, reinforcing how closely the two are tied. Other crypto-related stocks like Coinbase and Robinhood also saw declines during the same period, as traders pulled back from digital assets.

Saylor’s Faith in Bitcoin Remains

Despite mounting losses and investor concern, Strategy is doubling down on Bitcoin. The firm bought 41,002 BTC in January and an additional 855 BTC during the downturn for about $75 million, signaling strong belief in the long-term value of the asset.

Michael Saylor, now Executive Chairman, remains unfazed. He told investors that, “The actions by big finance, the actions by the big banks and the actions by the financial regulators are the fundamentals.” His stance continues to be that Bitcoin is a strategic asset worth holding through all market conditions.

CoinLaw’s Takeaway

Honestly, I’m not surprised by the volatility, but the scale of the losses is jaw-dropping. In my experience watching crypto-heavy companies, this is a sharp reminder that crypto is still not a stable store of value, especially for public companies with shareholders to answer to. Strategy’s conviction is impressive, but this level of exposure is a high-wire act, especially with billions in debt on the books. For everyday investors or even corporate treasurers considering Bitcoin, this is a real-world stress test unfolding in public view.

The post Michael Saylor’s Strategy Sees $4.3B BTC Loss appeared first on CoinLaw.

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