Michael Saylor’s strategy posted a net loss of $12.4 billion for the fourth quarter, mainly due to mark-to-market losses on its massive bitcoin holdings. The loss coincided with Bitcoin briefly falling below the $60,000 level, pushing its stake value below its cost basis for the first time since 2023 and reversing gains made after last year’s U.S. election-related rally.
Over the years, Strategy has evolved from an enterprise software company to a leveraged Bitcoin leverager, exploiting the persistent difference in its stock price to raise capital and buy more Bitcoin. This strategy now appears to be in decline. The company did not announce any new share offerings or debt financing alongside its results, indicating a tightening of access to capital as investor appetite wanes.
Although Saylor confirmed that there were no margin calls and that the company had $2.25 billion in liquidity, enough to cover interest obligations for more than two years, pressures are mounting as Bitcoin continues to trade below the company’s average purchase price of $76,052. The company also reiterated that it does not expect to make a profit in the foreseeable future.
Strategy announces its fourth quarter 2025 results:
– 713,502 $BTC detained. detained
– 22.8% BTC yield in 2025
– Largest US equity issuer, raised $25.3 billion in 2025
– $STRC increased to $3.4 billion; Current dividend rate of 11.25% https://t.co/d6oGz8jHI8-Michael Saylor (@saylor) February 5, 2026
The strategy holds 713,502 bitcoins worth $46 billion
Strategy currently holds more than 713,000 bitcoins, worth an estimated $46 billion, according to Bloomberg data. Although the company added $75.3 million worth of Bitcoin in late January, analysts say the broader model is under pressure. Mark Palmer, an analyst at Benchmark, told Bloomberg that investors are now wondering whether Strategy can still raise capital to fund additional Bitcoin purchases as market conditions deteriorate.
The criticism from critics has multiplied. Michael Barry also previously reported that Bitcoin’s continued decline could lead to cascading losses for its shareholders, reigniting concerns long raised by short sellers about the strategy’s reliance on leverage and non-performing assets. Strategy stocks are now down about 80% from their November 2024 peak, underscoring how quickly sentiment can change.
Bitmine faces $8.2 billion unrealized loss as Ethereum falls below $2,000
Venture capital firm BitMine Technologies is also suffering unrealized losses of around $8.2 billion after the price of Ethereum fell from the expected Ethereum price to around $1,930, well below the company’s average purchase price of $3,826 per coin. The company holds approximately 4.29 million Ethereum, purchased for approximately $16.4 billion, and has seen the value of these holdings decline after a decline of approximately 30% since early January.
JUST IN: Tom Lee’s Bitmine Immersion down over $8,200,000,000 (-50.29%) on its ETH holdings. pic.twitter.com/OpmssPD1pc
– Whale Insider (@WhaleInsider) February 6, 2026
Despite the decline, BitMaine has staked over 2.9 million ETH, generating annual revenue of approximately $188 million, and holds $538 million in debt-free cash. He views the pullback as a buying opportunity, even though his shares are down 88% from their July peak, reversing losses seen at Michael Saylor Strategy.
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