Strategy Inc, the US-listed company best known for holding large amounts of Bitcoin, has reported a massive $12.4 billion (£9.7bn) net loss for the final quarter of 2025 after Bitcoin prices plunged sharply.
The announcement, made in early February 2026, triggered a strong market reaction, with the company’s shares falling by around 17% in a single day.
The results matter because Strategy remains the largest corporate holder of Bitcoin in the world, meaning its financial performance now moves almost directly in line with crypto market swings.
Investors in the UK who hold crypto, Bitcoin-related stocks, or funds with exposure to digital assets could feel the knock-on impact.
Why Did Strategy Lose $12.4 Billion in One Quarter?
Strategy’s loss mainly reflects the sharp decline in Bitcoin prices during late 2025 and early 2026.
Although the company did not necessarily sell its Bitcoin holdings at a loss, the value of its Bitcoin reserves dropped significantly on paper.
This created a major “unrealised loss” on its financial statements, meaning the company recorded losses based on market value changes rather than actual cash leaving the business.
The reported quarterly loss is one of the largest in the company’s history.
How Much Have Bitcoin Prices Fallen Recently?
Bitcoin has suffered a major downturn over the past few months.
During the fourth quarter of 2025, Bitcoin dropped from around $120,000 in early October to about $89,000 by the end of December. The situation worsened further in early February 2026, with Bitcoin sliding again to around $65,000.
🔴 Bitcoin Price: $65,000 pic.twitter.com/eyyZ68Iwkz
— Bitcoin Price (@BTCPrice) February 6, 2026
Recent trading weakness has also pushed Bitcoin closer to the $62,500 level, adding further pressure to crypto-linked stocks and investor sentiment, as seen in this latest update on Bitcoin price weakness.
This rapid fall in Bitcoin prices wiped out large amounts of value across the global crypto market and hit companies like Strategy particularly hard because of their direct exposure.
How Many Bitcoins Does Strategy Own Right Now?
Strategy currently holds around 713,502 Bitcoins (BTC), making it the biggest corporate Bitcoin holder globally.
The company purchased these Bitcoin holdings at an average price of approximately $76,052 per Bitcoin, meaning the market value is now below the cost price.
This gap between what Strategy paid and what Bitcoin is worth today has contributed heavily to the reported losses.
Why Did Strategy Shares Drop by 17%?
Investors reacted quickly to the earnings results, pushing Strategy shares down around 17% in one of its worst single-day declines in years.
Market sentiment appears cautious because the strategy’s performance has become heavily tied to Bitcoin price movement.
When Bitcoin rises, Strategy often gains investor confidence. When Bitcoin falls sharply, investors tend to sell the stock aggressively.
Even though the company saw a slight bounce in after-hours trading, the main reaction showed concern about how much risk Strategy carries through its Bitcoin strategy.
Is Strategy Running Out of Cash?
Despite the huge reported loss, Strategy stated that it still holds around $2.25 billion (£1.75bn) in cash reserves.
That level of cash gives the company some breathing room. It should allow Strategy to cover debt-related costs and meet dividend commitments linked to its preferred shares in the near term.
However, investors remain cautious because the business model depends heavily on Bitcoin’s long-term recovery.
What Has Michael Saylor Said About the Bitcoin Strategy?
Strategy’s Executive Chairman Michael Saylor has remained one of Bitcoin’s most high-profile supporters.
Under his leadership, the company has repeatedly increased its Bitcoin holdings over the years, often buying even during periods of volatility.
The company is expected to use its earnings call to explain how it plans to handle the current downturn and whether it intends to continue buying Bitcoin despite falling prices.
How Does This Compare to Previous Strategy Results?
The scale of this loss stands out. Strategy reported far smaller losses in previous quarters, meaning this latest figure marks a sharp jump in negative performance. It also highlights how extreme Bitcoin market swings can quickly reshape company finances.
For investors, this quarter acts as a clear reminder that Bitcoin-linked stocks can behave very differently from traditional technology firms.
What Could Happen Next for Bitcoin Prices and Strategy?
The next few weeks could prove critical. If Bitcoin prices stabilise or rebound, Strategy could reduce future losses and regain investor confidence.
But if Bitcoin continues to fall, the company may face further pressure from shareholders, especially those concerned about long-term volatility and debt exposure.
Strategy’s future results will likely depend on one key factor: whether Bitcoin recovers strongly or stays stuck in a prolonged downturn.
