Strategy, formerly known as Microstrategy, announced its Q4 2025 earnings, revealing a stark $12.4 billion net loss largely due to new fair value accounting rules that compelled the company to report around $17.5 billion in unrealized losses as Bitcoin’s price fell by approximately 25–26% during the quarter. This volatility illustrates the heightened risk associated with Strategy’s positioning as a high-beta proxy for Bitcoin, a shift that has driven investor debate over the suitability of such structures for gaining crypto exposure. While Strategy’s operational software segment remains stable, its valuation is heavily influenced by Bitcoin’s price fluctuations, making it a more volatile investment than holding Bitcoin directly and aligning with broader market trends that favor simpler and more transparent investment vehicles.
Strategy faces $12.4B loss due to Bitcoin price swings
