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Strategy reported a $17.44 billion unrealized loss on digital assets for the three months ended Dec. 31, 2025, according to a Form 8-K filed Monday. The loss reflected Bitcoin price declines during late 2025 and did not involve asset sales or cash outflows. Despite the accounting impact, the company continued buying Bitcoin and raising capital through equity markets.
For the full year, Strategy recorded a $5.40 billion unrealized loss on digital assets alongside a $1.55 billion deferred tax benefit. The filing showed how quarterly earnings fluctuate with crypto prices even when holdings remain unchanged. Could accounting volatility shape how investors assess corporate Bitcoin strategies going forward?
The filing detailed a $5.01 billion deferred tax benefit tied to the fourth-quarter unrealized loss.
This adjustment reflected the tax treatment of declining asset values under current accounting rules. As a result, reported earnings shifted sharply even though Strategy kept its Bitcoin position intact.
For the year ended Dec. 31, Strategy also disclosed a $2.42 billion deferred tax liability linked to its digital assets. Meanwhile, the company reported a digital asset carrying value of $58.85 billion at year's end. These figures illustrate the scale of Strategy’s balance sheet exposure to Bitcoin price movements.
The company said management prepared the financial information included in the 8-K. Strategy added that its independent auditor, KPMG, did not audit or review the figures. The firm noted that KPMG expressed no opinion on the disclosed financial data.
Even after the fourth-quarter loss, Strategy continued accumulating Bitcoin in early January. The company acquired 1,283 BTC between Jan. 1 and Jan. 4 for $116 million. Those purchases brought total Bitcoin holdings to 673,783 as of Jan. 4.
Strategy funded the acquisitions through its at-the-market equity program. Between Jan. 1 and Jan. 4, the firm sold 735,000 Class A shares and raised $116.3 million in net proceeds. It also reported $195.9 million from selling 1,255,911 shares between Dec. 29 and Dec. 31.
The filing said the Bitcoin purchases aligned with Strategy’s treasury approach. The company continues to hold Bitcoin as its primary reserve asset. Following the latest acquisition, Strategy controls one of the world’s largest corporate Bitcoin positions.
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Alongside Bitcoin accumulation, Strategy reported a stronger liquidity position. The company said its U.S. dollar reserve rose to $2.25 billion as of Jan. 4. That cash balance supports operations, debt servicing, and preferred stock dividends.
Strategy disclosed an aggregate Bitcoin purchase cost of $50.55 billion as of Jan. 4. The average purchase price across its holdings stood at $75,026 per Bitcoin. The filing confirmed that no Bitcoin sales occurred during the reported periods.
Michael Saylor has repeatedly stated that the company views Bitcoin as a long-term store of value. The January filing showed that Strategy maintained this approach despite late-2025 market volatility. The company continued expanding both its Bitcoin holdings and cash reserves during that period.
Read More: MicroStrategy Increases Bitcoin Holdings to Nearly 650K BTC Despite Stock Struggles
Strategy reported a $17.44B unrealized Bitcoin loss for Q4 while continuing to expand its Bitcoin position through equity funding. The filing detailed deferred tax effects, rising liquidity, and unchanged long-term holdings. The takeaway remains clear: Strategy maintained its Bitcoin-focused treasury approach despite market volatility.
