Strategy, the world’s largest corporate holder of Bitcoin (BTC), is sitting on an unrealized loss of roughly $8.9 billion on its cryptocurrency holdings as prices trade well below the company’s average acquisition cost, highlighting the growing financial strain tied to its aggressive treasury strategy.
The company holds 713,502 Bitcoin acquired at a total cost of $54.26 billion, or an average of $76,052 per coin.
At a current Bitcoin price of about $63,600, those holdings are valued significantly below cost, despite Strategy continuing to add to its position through January 2026.
Bitcoin Drawdown Weighs On Financial Results
The impact of Bitcoin’s decline was already visible in Strategy’s fourth-quarter earnings.
The company reported an operating loss of $17.4 billion for Q4 2025, driven almost entirely by unrealized losses on its digital assets under fair-value accounting rules.
Net loss attributable to common shareholders totaled $12.6 billion for the quarter, compared with a loss of $670.8 million in the same period a year earlier, when impairment accounting rather than fair value was still in use.
Despite the losses, Strategy ended the year with $2.3 billion in cash and cash equivalents, up sharply from the prior year, after establishing a dedicated USD reserve to support dividend and interest obligations.
Capital Raising Accelerates Despite Bitcoin Volatility
Strategy continued to lean heavily on capital markets in 2025, raising $25.3 billion during the year and ranking as the largest U.S. equity issuer, according to the company.
The capital was raised through a mix of common stock issuance and multiple preferred equity offerings tied to its digital credit platform.
Five preferred stock IPOs generated $5.5 billion in gross proceeds in 2025, while additional at-the-market programs remained active into early 2026.
Strategy said it retains more than $40 billion in remaining issuance capacity across its various programs.
Management framed the capital activity as central to scaling its Bitcoin treasury strategy and supporting dividend obligations across its preferred equity stack.
Digital Credit Platform Becomes Core Pillar
Alongside its Bitcoin accumulation, Strategy has increasingly emphasized its digital credit business.
Its flagship instrument, STRC, has grown to an aggregate stated amount of $3.4 billion and currently carries an annualized dividend rate of 11.25%.
The company said it has paid $413 million in cumulative distributions and established a $2.25 billion reserve, designed to cover approximately 2.5 years of dividends and interest payments.
Management expects return-of-capital distributions to continue for at least a decade, subject to market conditions.
Executives argue the structure allows Strategy to absorb Bitcoin price volatility at the holding-company level while offering income-oriented investors a more stable exposure.
Management Defends Long-Term Bitcoin Thesis
Chief Executive Phong Le said the company remains focused on expanding its digital credit platform to “generate amplification” and drive Bitcoin per share growth for common shareholders.
Chief Financial Officer Andrew Kang pointed to regulatory clarity and fair-value accounting as milestones supporting broader corporate Bitcoin adoption.
Executive Chairman Michael Saylor described Strategy’s balance sheet as a “digital fortress” anchored by its Bitcoin holdings, arguing that volatility does not undermine the company’s long-term thesis.
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