Tysons Corner, VA – – Strategy Inc (Nasdaq: STRF/STRC/STRK/STRD/MSTR; LuxSE: STRE) reported substantial losses for the fourth quarter of 2025, alongside a continued expansion of its Bitcoin holdings and a significant capital raise. The company, the largest corporate holder of Bitcoin, announced a net loss of $12.4 billion, or $42.93 per diluted share, compared to a net loss of $670.8 million in the same period last year.
Despite the losses, Strategy has aggressively pursued its strategy of accumulating Bitcoin, increasing its holdings to 713,502 coins as of . This represents approximately 3.4% of all Bitcoin in existence, according to the company. The average cost basis for these holdings is approximately $76,052 per Bitcoin, with a current market value of around $83,740 per coin as of .
The company’s financial performance was heavily impacted by unrealized losses on its digital assets. The operating loss for the fourth quarter reached $17.4 billion, largely attributed to a $17.4 billion unrealized loss on its Bitcoin holdings. This marks the fourth consecutive quarter Strategy has reported results under fair value accounting standards for Bitcoin.
Capital Markets Activity and Digital Credit Expansion
Strategy’s aggressive investment in Bitcoin has been fueled by a massive capital raise throughout 2025. The company secured over $25.3 billion in capital, making it the largest U.S. Equity issuer for a second consecutive year. This included $5.5 billion raised through five initial public offerings (IPOs) of preferred stock.
A key component of Strategy’s strategy is its “Digital Credit” platform, centered around its STRC (Stretch) instrument. STRC has scaled to an aggregate stated amount of $3.4 billion, with a current dividend rate of 11.25%. The company has paid out $413 million in cumulative distributions on STRC, representing a blended annual dividend rate of 9.6%. A $2.25 billion USD Reserve has been established, providing 2.5 years of coverage for dividend and interest obligations.
Michael Saylor, Executive Chairman of Strategy, emphasized the company’s long-term vision, stating, “Strategy has built a digital fortress anchored by 713,502 bitcoins and our shift to Digital Credit, which aligns with our indefinite bitcoin horizon.” He highlighted the complementary nature of MSTR common stock and STRC, with STRC designed to amplify returns for MSTR investors while absorbing Bitcoin price volatility for STRC investors.
Financial Highlights and Future Outlook
Despite the significant losses, Strategy reported a 22.8% BTC Yield for full-year 2025, achieving its target range. The company also reported a total Bitcoin gain of 101,873 coins and a $8.9 billion dollar gain from its Bitcoin holdings during the year.
Cash and cash equivalents stood at $2.3 billion as of , a substantial increase from $38.1 million at the end of 2024. Long-term debt totaled $8.2 billion, while preferred equity added reached $6.9 billion through the five IPOs.
Looking ahead, Strategy intends to continue expanding STRC to generate further amplification and drive growth in Bitcoin Per Share (BPS) for MSTR common stock investors. The company is also updating its rules-based framework for adjusting STRC dividend rates, aiming to maintain the trading price of STRC Stock near its $100 stated amount.
Strategy expects that 100% of distributions paid on its preferred equity instruments will continue to be treated as a non-taxable return of capital (ROC) for the foreseeable future – defined as ten years or more – due to the company’s lack of accumulated earnings and profits. However, the company cautions that this expectation is subject to change and shareholders should consult their tax advisors.
The company’s software business also showed growth, with total revenues increasing by 1.9% year-over-year in the fourth quarter, reaching $123.0 million. Subscription Services Revenues were up 62.1% year-over-year at $51.8 million.
Strategy maintains a dashboard on its website (www.strategy.com) providing real-time information on market prices, Bitcoin holdings, and other key performance indicators.
