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Shares of Strategy fell sharply on Thursday after the company reported a $12.4 billion net loss for the fourth quarter of 2025, driven by the decline of Bitcoin. MSTR stock dropped more than 17% to close at $106.99 on February 5, extending losses that began before the earnings release.
The decline followed a broader crypto market sell-off, with Bitcoin falling more than 14% to below $65,000 during the session. The stock touched an intraday high of $122 and a low of $104.16, while trading volume surged to 56 million shares.
That volume far exceeded the 21 million share daily average, according to Google Finance data. After market hours, shares slipped another 0.97% to $105.95, deepening weekly losses.
The company suffered a financial loss of $12.4 billion, constituting its fourth-quarter 2025 results, Bitcoin declined throughout that time frame. The company adopted fair value accounting for bitcoin in 2025, which affected its earnings due to market price fluctuations that occurred throughout each quarter.
As a result, Strategy recorded an unrealized $17.4 billion loss on digital assets despite increasing its bitcoin holdings. MSTR shares had already fallen more than 10% earlier in the day before the earnings announcement. The post-earnings selloff marked one of the stock’s steepest single-day declines in several years.
The drop pushed Strategy’s shares to a two-year low, reflecting heightened sensitivity to crypto market moves. Year-to-date, the stock is down 31.92% and has fallen 68.22% over the past year amid a prolonged crypto bear market.
Despite all that, Bitcoin has also plummeted to $65K on a bearish scale. Within 24 hours, investors reported high volatility as the token tested the $60K Mark. Will the token plummet further to $50K or was it just a rebound?
Strategy increased its bitcoin balance to 713,502 coins by February 1, 2026, including 41,002 coins purchased in January alone. The company’s total acquisition cost reached $54.26 billion, while market value stood near $59.75 billion in late January.
Full-year 2025 bitcoin yield reached 22.8%, producing a bitcoin gain of 101,873 coins and a dollar gain of $8.9 billion. During Q4 2025, Strategy raised $5.6 billion through equity and preferred stock programs. Between January and February 2026, it raised an additional $3.9 billion using similar instruments.
Common stock sales generated $4.4 billion in Q4, while preferred offerings contributed hundreds of millions more. A November 2025 preferred stock IPO raised €620 million through STRE shares listed in Luxembourg.
Strategy’s enterprise value fell 12.82% to $49.95 billion as the stock declined. Canaccord Genuity maintained a buy rating on Strategy but cut its price target from $474 to $185 per share.
Bitcoin peaked at $126,080 in October before reversing sharply following a historic liquidation event on October 10. The cryptocurrency now trades about 46% below that record high after months of sustained selling pressure.
Kraken executive Matt Howells Barby said Bitcoin could establish a new trading base between $54,000 and $60,000. Does this accounting shift change how investors interpret quarterly performance for large bitcoin treasury companies?
Read More: Strategy’s Bitcoin Buying Spree Fails to Lift MSTR Stock: How Is the Market Reacting?
MSTR stock dropped sharply after Strategy reported a $12.4 billion Q4 2025 loss tied to Bitcoin’s price fall and fair value accounting. Heavy trading volumes followed as Bitcoin slid below $65,000. The results show how closely Strategy’s performance now tracks crypto market swings.
