Strategy Reports $17.4B Unrealized Loss on Digital Assets in Q4

Summary: In a recent 8-K filing, Strategy revealed a staggering $17.44 billion unrealized loss on digital assets for the fourth quarter of 2025, highlighting the volatility in the cryptocurrency market. Despite these losses, the company continues to invest in Bitcoin, demonstrating its long-term commitment to digital assets.

Key Takeaways

Strategy reported a $17.44 billion unrealized loss on digital assets for Q4 2025.
The company recorded a total unrealized loss of $5.40 billion for the entire year.
Strategy acquired 1,283 BTC valued at $116 million in early January 2026.
They continue to raise funds through equity sales to finance Bitcoin purchases.
A liquidity buffer of $2.25 billion has been maintained for operational needs.

Strategy

Strategy's Financial Landscape for Q4 2025

In an 8-K filing on Monday, Strategy disclosed a significant $17.44 billion unrealized loss on digital assets for the three-month period ending December 31, 2025. This filing also detailed a deferred tax benefit of $5.01 billion related to the quarterly loss, illustrating how accounting can fluctuate with crypto market dynamics, even while the company retains its holdings.

For the complete year concluding December 31, 2025, Strategy reported an overall unrealized loss of $5.40 billion in digital assets, accompanied by a $1.55 billion deferred tax benefit.

Continued Investment Despite Losses

Despite the considerable unrealized loss in Q4, Strategy persisted in acquiring Bitcoin. Between January 1 and January 4, 2026, the company purchased 1,283 BTC for a total of $116 million, averaging a purchase price of $90,391 per Bitcoin. This brought their total Bitcoin holdings to 673,783 BTC as of January 4, 2026.

To facilitate these purchases, Strategy utilized funds from its stock sales conducted under its at-the-market program. They reported net proceeds of $116.3 million from selling 735,000 shares during the same timeframe.

Equity Sales and Liquidity Management

Furthermore, Strategy achieved net proceeds of $195.9 million from the sale of 1,255,911 shares between December 29 and December 31, 2025. This reflects their ongoing strategy of raising equity to convert into Bitcoin investments.

As of January 4, the total acquisition cost for their Bitcoin holdings reached $50.55 billion, with an average purchase price of $75,026 per Bitcoin.

Additionally, the company maintained a US dollar reserve of $2.25 billion to support preferred stock dividend payments and interest on its outstanding debts. This liquidity buffer is crucial for navigating the fluctuating crypto market.

In their filing, Strategy emphasized that the financial information contained in the 8-K was prepared by management. The figures provided had not been audited or reviewed by their independent auditor, KPMG, which did not express any opinion on them.