strategy

The Strategy Inc. is also forecast to register a loss in the order of multibillions in the fourth quarter of 2025 as a result of Bitcoin's drop by about 24% within that period, which means that the value of its large Bitcoin holdings will continue to dwindle. The software company that operates as a Bitcoin treasury fund holds about$60 billion worth of Bitcoin.
The loss presents a drastic change from the $2.8 billion profit reported in the previous quarter. One of the main contributing factors in this changeover is the adoption of a newly formed accounting principle that came into effect in early 2025. According to this principle, digital assets have been required to be valued at fair market prices. As a result, gains/losses have been made direct indicators of profits. This has caused Bitcoin volatility to have a considerable effect.
The overall sentiment in the market decreased in 2025 due to the decline of Strategy Inc's stock shares by 48%. The worries have focused on the viability of the business model, as the company's revenue is very limited from its traditional software business. Moreover, it is not generating any operating income from its investment in Bitcoins. There were even speculations that the company might be compelled to sell its Bitcoins in the future to pay off its liabilities like interests as well as dividends. However, in this scenario, Strategy Inc raised additional funds in the beginning of December through the common stock offering.
As of the beginning of January 2026, the company's enterprise value is approximately $61 billion, close to the market value of the company's Bitcoins. It has been the first time in over two years that the premium or the risk adjustment for accessing Strategy Inc's Bitcoin strategy has come close to being negligible. This has come at a time when the risk adjustment was expected to further rise.
During December, the company provided an update on the anticipated numbers for the whole of the year, estimating that there could be an operating income ranging from a loss of $7 billion to a gain of $9.5 billion. This could not be attributed to just any figures but was pegged on the anticipated year-end value of Bitcoin, which could range from $85,000 to $110,000. As of the end of the year, it settled at $87,648. It is expected that the weak last quarter of Bitcoin contributed to this loss.
Michael Saylor, Strategy Inc Co-Founder and Chairman, has been accumulating Bitcoins since 2020 as an inflation hedge, turning his firm into one of the most notable institutional holders of Bitcoins. Although his move is responsible for inspiring many institutions to walk the same route, their respective stocks were affected negatively during the crypto market downturn.
Saylor's personal wealth retreated about 40% in the year 2025 to about $3.8 billion, with factors contributing to the decline including the descent in Bitcoin price and the decline in Strategy Inc's stock. Given the fact that the firm's enterprise value is about equal to its crypto assets and the ratio of mNAV being just about 1 and well above the nadir reached within the preceding two years, the level of investor confidence seems precarious.
In their opening trades of 2026, shares of Strategy Inc. were up 5.2% to about $160, and Bitcoin was up 2.6% to about $90,549. Despite Tuesday's gains, it is clear that both assets are well below their highs attained at the end of 2024, sparking doubts concerning whether its strategy involving high investment in Bitcoin will help it recover its prestige.

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