Strategy Stock: The Amplified Bitcoin Proxy

Strategy US5949724083

Investors in Strategy are making a concentrated bet on Bitcoin, but with significantly heightened volatility. This dynamic was on full display last week when quarterly results and a sliding Bitcoin price first dragged the shares down, only to catapult them higher shortly after. The primary catalyst was not operational performance, but an accounting effect.

Market movements for Strategy often mirror Bitcoin's, but with amplified intensity. Following the earnings release, the stock initially sold off sharply, only to stage a powerful rebound the next day in tandem with Bitcoin's rapid recovery. Market observers frequently describe the equity as a "leveraged Bitcoin tracker," where moves in the cryptocurrency often result in disproportionate moves in the stock.

The pressure of recent weeks is evident in the current chart: Over the past 30 days, the stock is down approximately 30% (current price: €110.00).

A Multi-Billion Dollar Loss Driven by Valuation Rules

On February 5, Strategy reported its fourth-quarter 2025 figures, announcing a net loss of $12.6 billion. According to the company, the main driver was a massive, unrealized loss on its Bitcoin holdings, now made visible on the income statement due to new fair-value accounting regulations. This heavily depressed quarterly earnings, even though none of the Bitcoins were sold.

Key data from the report includes:

• Bitcoin Holdings: 713,502 Bitcoin (as of February 1, 2026)
• Total Acquisition Cost: $54.26 billion
• Average Price per Bitcoin: $76,052
• Q4 Operating Loss: Approximately $17.4 billion
• Capital Raised in FY 2025: Over $25 billion

Capital Raising Continues at a Record Pace

Despite market turbulence, Strategy has not altered its core strategy. The company's earnings release confirmed it raised more than $25 billion in capital during the 2025 fiscal year, marking the second consecutive year it was the largest issuer of equity among U.S. publicly listed companies.

Gross proceeds from various equity programs totaled around $5.6 billion in the fourth quarter alone. Furthermore, the company added another 41,002 Bitcoin in January 2026. The clear implication is that management continues its accumulation strategy even amidst declining prices.

Management Addresses Balance Sheet Concerns

During the earnings call, executives directly addressed investor nervousness surrounding the company's capital structure. CEO Phong Le stated that Bitcoin would need to fall to roughly $8,000 and remain at that level for five to six years before Strategy would encounter difficulties servicing its convertible notes.

The company also highlighted a USD reserve of $2.25 billion, which it claims is sufficient to cover dividend obligations on preferred stock instruments for more than 2.5 years. Executive Chairman Michael Saylor announced a "Bitcoin Security Program" aimed at coordinating with the cyber and crypto security community to prepare for risks associated with quantum computing.

The fundamental thesis remains unchanged: as long as Bitcoin sets the directional trend, Strategy's shares are likely to continue trading as a highly volatile proxy, experiencing all the associated ups and downs.