• Strategy reported a net loss of $12.6 billion and an operating loss of $17.4 billion.
• Bitcoin has slipped below $61,000, far away from Strategy's cost basis of about $76,000.
• Strategy shares closed around $106, down more than 17% on Thursday.

In its earnings report on Thursday, Bitcoin treasury and financial intelligence firm Strategy said it recorded a $12.6 billion net loss attributable to common shareholders in the fourth quarter of 2025, a stark contrast with a net loss of $670.8 million in the same period in 2024.

The company posted an operating loss of $17.4 billion — entirely dominated by paper losses of its Bitcoin holdings — compared to a loss of $1 billion in Q4 2024, one of the largest quarterly losses recorded by a US corporate entity. The period was marked by Bitcoin declining from a peak of about $126,000 in October to around $88,000 on December 31.

Since then, the top crypto has extended its decline. Bitcoin is on track to record one of its largest single-day drawdowns in history, falling by 11% over the past 24 hours toward $64,000 as of writing. So far, BTC is down nearly 35% in 2026.

Bitcoin's price slip below Strategy's cost basis

Strategy, which owns the largest Bitcoin reserve, is feeling the brunt of the price crash, as it now sits on an unrealized loss of over $9.5 billion on its 713,502 BTC holdings, which it acquired at an average cost of $76,052 per coin. Applying fair value accounting to its BTC assets, the company has recorded another loss of about $18 billion since the beginning of the year.

Strategy said it holds a USD reserve of $2.25 billion, providing it with 2.5 years of coverage to pay dividends on its preferred stock without liquidating its BTC assets.

The company's common shares, MSTR, closed at $106.9 on Thursday, down more than 17%. MSTR has erased over 75% of its value since last July.