Strategy Falls Short of Q4 Earnings Expectations
Strategy, a prominent corporate holder of Bitcoin, recently announced a disappointing earnings report for the fourth quarter. The company holds 713,502 Bitcoin, but its financial results fell short of analysts’ expectations, leading to a slight decline in stock price after hours.
Q4 Earnings Overview
During Thursday’s trading session, Strategy experienced a significant drop of 17% amid a broader downturn in the cryptocurrency market. The price of Bitcoin fell below $64,000, a threshold not seen since 2024. Overall, Strategy’s shares have plunged 69% in the past year.
Revenue and Loss Figures
- Revenue from Software: The company’s legacy software division generated $122.8 million, surpassing the analysts’ consensus of $119.1 million, according to FactSet.
- Diluted Loss Per Share: Strategy reported a diluted loss of $42.93 per share, which is significantly worse than the anticipated loss of $0.08.
- Unrealized Loss on Bitcoin Holdings: The company faces a staggering $6.5 billion unrealized loss, given its average purchase price of Bitcoin at $76,052 as of February 1.
Operating Loss Insights
For the fourth quarter of 2025, Strategy reported an operating loss of $17.4 billion due to its digital assets. This figure represents a stark contrast to the $1 billion operating loss reported in the fourth quarter of 2024.
Market Position and Valuation
As of now, Strategy has a market capitalization of $32.1 billion, a significant decrease from $75 billion recorded in October 2025. The stock has been trading below its crypto holdings, with a market-adjusted net asset value (mNAV) of 0.85x, dipping below the 1x threshold.
Expert Opinions and Future Outlook
Nic Puckrin, co-founder of Coin Bureau, addressed the company’s situation, stating that even as Bitcoin’s price continues to decline, Strategy is not under immediate financial threat. Its Bitcoin holdings are not used as collateral, and any potential liquidations are not expected until next year.
Analysts have responded to the situation with a mix of caution and optimism. Recently, Canaccord analysts reduced their price target for Strategy from $474 to $185 while maintaining a “buy” rating. Similarly, TD Cowen analysts adjusted their forecast from $500 to $440, highlighting concerns over the firm’s aggressive Bitcoin acquisition strategy.
As Strategy navigates these challenges, the response from the market and analysts indicates a keen interest in how the company will manage its Bitcoin holdings and explore potential refinancing options.
