Strategy’s Unwavering Bitcoin Bet: Billions in Losses Met with Further Purchases

Strategy US5949724083

A quarterly loss of $12.4 billion would typically send a corporate board into crisis mode. For the company now known as Strategy, formerly MicroStrategy, it appears to be just another data point. The firm reported deeply negative results for the fourth quarter of 2025, yet its leadership remains steadfast, even using recent market turbulence as a buying opportunity. This raises a critical question for investors: is this a display of strategic conviction or dangerous obstinacy?

In a recent earnings call, CEO Phong Le sought to reassure investors concerned about the company's debt levels by emphasizing the resilience of its model. He stated that Strategy would only face serious difficulties if the price of Bitcoin fell to $8,000 and remained there for several years. Executive Chairman Michael Saylor framed the company as a "digital fortress," a claim backed by a stated US dollar reserve of $2.25 billion. According to management, this liquidity is sufficient to cover interest and dividend payments for the next two to three years, even if the so-called crypto winter persists.

The aggressive accumulation strategy, however, has left clear marks on the share price. The stock currently trades around €113, reflecting a decline of more than 65 percent over a twelve-month period.

Persistent Accumulation in the Face of Losses

The colossal $12.4 billion loss dwarfs the $670 million deficit reported in the same quarter a year earlier. This dramatic downturn is primarily attributed to an accounting impairment of the Bitcoin holdings on the company's balance sheet, a direct result of significant pressure on the broader cryptocurrency market.

Rather than retreating, Strategy moved forward with another offensive. An SEC filing revealed that between February 2 and February 8, the company purchased an additional 1,142 Bitcoin for approximately $90 million, paying an average price of $78,815 per coin. This acquisition brings Strategy's total Bitcoin treasury to 714,644 coins. The purchase was financed through the issuance of new shares, a tactic that has repeatedly made the company one of the largest equity issuers in the United States.

These substantial capital raises, while diluting existing shareholders, have so far secured the company's operational runway. The fundamental reality for investors is that Strategy remains a pure-play bet on the future of Bitcoin. Without a hedging operational core business, its shares are likely to continue moving almost in lockstep with the volatile crypto market.

@ boerse-global.de | US5949724083 STRATEGY’S