Strategy posts surprise loss on fair-value Bitcoin write-down

Investing.com -- Strategy Inc (NASDAQ: MSTR) reported a sharply wider quarterly loss as accounting-driven swings in the value of its bitcoin holdings. The company is the world’s largest corporate holder of Bitcoin and its stock price is closely linked to the digital asset’s performance.

Shares were down 1.4% in extended trading, after it settled 17% lower in Thursday trading. Bitcoin’s value fell below $70000, reaching levels not seen since late 2024.



The company, formerly known as MicroStrategy, posted a fourth-quarter loss of $42.93 per share, compared with analysts’ expectations for a profit of $2.97. Revenue rose to $123 million from a consensus estimate of $118.8 million.

Strategy recorded an operating loss of $17.4 billion in the quarter, driven almost entirely by unrealized losses on its bitcoin holdings under fair value accounting rules adopted at the start of 2025.

By comparison, the year-earlier quarter included $1 billion of digital asset impairment charges under the previous cost-less-impairment accounting model.

Net loss attributable to common shareholders widened to $12.6 billion from $670.8 million a year earlier.

Bitcoin holdings rose to 713502 coins, including more than 41000 acquired in January 2026 alone.

A central pillar of that strategy is STRC, its so-called “Digital Credit” preferred equity instrument.

Strategy said STRC has grown to $3.4 billion in size, supported by increasing liquidity and lower volatility.

The company also unveiled an updated, rules-based framework for adjusting STRC’s variable monthly dividend, which currently stands at 11.25%, linking potential increases or cuts to the stock’s volume-weighted average price.

Management said the dividend mechanism has helped keep STRC trading close to its $100 stated value even during periods of weaker bitcoin prices.

Strategy added that it has built a $2.25 billion cash reserve to support dividend obligations, providing more than two years of coverage and strengthening its credit profile.

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