Bitcoin Giant Reports Major Quarterly Loss
On Thursday, Strategy, a leading player in the Bitcoin space, announced a substantial quarterly loss of $12.4 billion. Despite the alarming figures, executives urged investors to remain calm and “hold on” during the ongoing downturn in the cryptocurrency market.
In a call discussing the fourth quarter results for 2025, co-founder Michael Saylor, CEO Feng Lu, and CFO Andrew Kang emphasized their commitment to accumulating cryptocurrencies with a long-term perspective.
“The two words behind ‘The Hitchhiker’s Guide to the Galaxy’ are ‘Don’t panic,'” noted Thaler, who has been instrumental in the company’s strategy shift towards cryptocurrency accumulation.
These results came amidst a notable drop in Bitcoin prices. On Thursday afternoon, Bitcoin was trading at $63,928 in New York, down 13% in just a day, and nearly 49% from its all-time high of $126,080 reached last October.
On the stock market, Strategy (MSTR) also faced challenges, closing down more than 17% on the same day.
The software company, previously known as MicroStrategy, is grappling with significant losses largely linked to its vast Bitcoin holdings. Currently, it holds 713,502 Bitcoins valued at around $45.9 billion, while its total acquisitions cost $54.2 billion, leading to an unrealized loss of $8.3 billion.
Investors typically purchase Strategy stocks to gain cryptocurrency exposure. However, when crypto prices drop, MSTR, which seeks to deliver returns exceeding those of cryptocurrencies, feels the impact as well.
Notably, MSTR stock is down about 75% from its peak of nearly $435 last July.
Lee advises investors to take a broader view. “Some of you bought Bitcoin or MSTR last year, but this is your first downside. My advice is to hang on. Keep in mind the fundamentals that drew you to Bitcoin in the first place.”
The losses at Strategy are reflective of a broader decline in the cryptocurrency market, with all major digital assets affected by Bitcoin’s downturn that began in late 2025. The market is still recovering from a massive liquidation event where over $19 billion in stakes vanished, marking the largest event of its kind in digital asset history.
Even with the volatility, experts suggest that Bitcoin’s drop, while significant, has not been as severe as in previous bear markets. MSTR investors are likely hoping for a reversal of this trend.
