Strategy reports a multi-billion dollar unrealized loss tied to BTC holdings

Investing.com -- Strategy reported steep unrealized losses tied to its bitcoin holdings in a new Form 8-K filed today, detailing a sharp fourth-quarter decline in the carrying value of its digital assets due to the price decline of the leading cryptocurrency.

For the full-year 2025, the company disclosed a $5.40 billion unrealized loss on digital assets, along with a $1.55 billion deferred tax benefit.

The fourth quarter was substantially more volatile. Strategy reported a $17.44 billion unrealized loss for the three months ended Dec. 31, alongside a $5.01 billion deferred tax benefit.

Bitcoin closed above $124,000 in early October before falling and closing below $90,000 at the end of 2025. However, it has climbed so far in January, now trading at over $93,000.

As of year-end, Strategy held $58.85 billion in digital assets and reported a related $2.42 billion deferred tax liability.

Strategy continued adding to its bitcoin position into early 2026. From Jan. 1 to Jan. 4, the company acquired 1,283 bitcoin at an aggregate purchase price of $116.0 million, bringing total holdings to 673,783 bitcoin at an aggregate cost of $50.55 billion.

Purchases were funded through ongoing sales under its at-the-market stock offering program.

The filing shows Strategy raised $195.9 million in net proceeds from stock sales between Dec. 29 and Dec. 31 and another $116.3 million between Jan. 1 and Jan. 4.

The company also reported a $2.25 billion U.S. dollar reserve as of Jan. 4, used to support preferred dividends and interest payments.

You May Also Be Interested In

• BofA maintains underperform ratings on six BDC stocks
• CoVolt Power files for proposed IPO
• Jefferies sees metals breakout on currency concerns