Strategy misses Q4 earnings expectations
The largest corporate bitcoin holder reported results amid a widespread crypto crash.
Strategy, the largest corporate bitcoin holder, with 713,502 bitcoin, reported fourth-quarter earnings today that missed analysts’ earnings-per-share estimates. Shares were slightly down after-hours, but had already plunged 17% during Thursday trading alongside a widespread crypto crash, with the price of bitcoin falling below $64,000, a level not seen since 2024.
Shares are down 69% in the past year.
Revenue from its legacy software business stood at $122.8 million, just above analysts’ consensus estimate of $119.1 million, as compiled by FactSet. It reported a diluted loss per share of $42.93, way below expectations of a $0.08 loss.
But the main focus is on its bitcoin operations. Strategy purchased its bitcoin at an average price of $76,052 as of February 1. The company is now underwater on its holdings, and CoinDesk data shows that it faces a $6.5 billion unrealized loss.
Per the report, operating loss for the fourth quarter of 2025 included an unrealized loss of $17.4 billion on the company’s digital assets. In the fourth quarter of 2024, operating loss stood at $1 billion.
Strategy, with a $32.1 billion market cap (down from $75 billion in October 2025), has been trading below its crypto holdings, dipping under 1x mNAV (market-adjusted net asset value) and at 0.85x on Thursday, according to Bitcoin Treasuries.
Nic Puckrin, cofounder of Coin Bureau, told Sherwood News that now that bitcoin is in free fall, it leaves Strategy nursing a paper loss, but importantly, it’s not facing margin calls or forced liquidations.
“Its BTC isn’t pledged as collateral, and the first convert maturity isn’t until next year. Plus, the company has multiple potential levers, including refinancing, ATM issuance if mNAV stays above 1, and even limited bitcoin-backed lending. The bottom line is that MSTR has plenty of flexibility, regardless of where the Bitcoin price is going in the short term,” Puckrin said.
Earlier this week, Canaccord analysts slashed Strategy’s price target to $185 from $474, though they maintained a “buy” rating, CoinDesk shows.
Last month, TD Cowen analysts also lowered their price target on Strategy to $440 from $500, citing its “audacious” bitcoin buying and noting that “greater equity in the mix reduces BTC yield.”
