Strategy Reports $12.4B Loss With Record Bitcoin Holdings

Strategy Inc achieved a net loss of $12.4 billion on a quarterly basis and had 713,502 bitcoins valued at $59.75 billion. Its Digital Credit platform, STRC, grew to $3.4‧billion.

Strategy Inc shocked investors with a massive $12.4 billion net loss for Q4 2025. The Bitcoin Treasury Company now holds 713,502 bitcoins despite the staggering quarterly deficit.

According to Strategy’s official press release, the company acquired 41,002 bitcoins in January 2026 alone. President and CEO Phong Le stated the firm raised $25.3 billion in capital throughout 2025. This made Strategy the largest US equity issuer for two consecutive years.

Bitcoin Holdings Surge Amid Accounting Shift

Strategy’s bitcoin cache cost $54.26 billion total. This averages $76,052 per bitcoin. Current market value reached $59.75 billion as of February 1, 2026.

The company achieved a 22.8% BTC Yield in fiscal year 2025. This fell within their target range of 22% to 26%. Executive Chairman Michael Saylor called the holdings a “digital fortress” supporting the company’s indefinite bitcoin horizon.

CFO Andrew Kang highlighted a major accounting change. Strategy now uses fair value accounting for Bitcoin. The Q4 operating loss of $17.4 billion included unrealized losses on digital assets. Previous cost-less-impairment accounting showed only $1.0 billion in losses for Q4 2024.

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Digital Credit Platform Gains Momentum

STRC Stock scaled to $3.4 billion in aggregate stated amount. The variable dividend rate currently sits at 11.25%. Strategy paid $413 million in cumulative distributions with a 9.6% blended annual dividend rate.

The company established a $2.25 billion USD Reserve. This provides 2.5 years of dividend and interest coverage. Kang emphasized that this strengthens the strategy’s credit profile significantly.

Strategy raised $5.6 billion in Q4 2025 through various stock programs. An additional $3.9 billion came in between January 1 and February 1, 2026. The Common Stock ATM Program generated $4.4 billion in Q4 alone.

Tax Benefits Drive Return of Capital Strategy

All 2025 distributions on preferred equity instruments qualified as nontaxable return of capital. This applies to US federal income tax purposes. Strategy expects ROC distributions to continue for ten years or more.

The company believes it has no accumulated earnings and profits for tax purposes. It doesn’t expect to generate current E&P in the foreseeable future.

Strategy’s STRC dividend framework uses the volume-weighted average price monthly. Prices below $95 trigger 50 basis point increases. Prices above $101 prompt 25 basis point decreases. This mechanism maintains STRC trading near its $100 stated amount.

Software revenues reached $123 million in Q4 2025. This marked a 1.9% year-over-year increase. Subscription services revenues jumped 62.1% to $51.8 million. Product support revenues declined 16.9% to $48.5 million.