Strategy’s Bitcoin Treasury is underwater, but 2025 results are still impressive

Bitcoin drops nearly $60,000, leaving Strategy’s $59.75 billion underwater.

Strategy, the world’s largest corporate Bitcoin holder, reported that it owned 713,502 BTC as of February 1, worth approximately $59.75 billion. The company’s total cost base for these holdings is $54.26 billion, which translates to an average cost of $76,052 per bitcoin.

With Bitcoin having fallen to nearly $60,000, well below Strategy’s average purchase price, the company’s massive BTC treasury is currently underwater.

Treasury under pressure

In 2025, Strategy reaches a full year BTC return of 22.8% and a recorded gain of 101,873 BTC. The company continued to grow its BTC treasury in January 2026, eventually acquiring an additional 41,002 BTC.

Strategy started in 1989 as a traditional software company focused on data analytics. In 2020, co-founder Michael Saylor made a big move into Bitcoin, seeing it as a safer alternative to cash during the pandemic-era stimulus and low interest rates. The company started using BTC as a long-term investment vehicle.

By 2025, it was rebranded as Strategy and fully embraced its role as a BTC-first company. The pivot caught the attention of regulators and index providers, who questioned whether a crypto-dominated company should remain in the major indices. MSCI suggested that companies holding more than half of their assets in Bitcoin could be considered non-operational. However, Strategy argued that it is actively using Bitcoin to raise capital and increase shareholder value. Attempts to join the S&P 500 in September and December 2025 also failed.

Despite this, Strategy’s Bitcoin holdings have remained central to the financial structure and are closely linked to the digital credit instruments, especially STRC, which acts as a complementary risk management and capital strengthening tool. STRC’s growth to $3.4 billion was supported by higher liquidity and lower volatility in the crypto markets.

The company raised $25.3 billion in 2025 to support its BTC treasury and preferred stock offerings, making it the largest U.S. equity issuer for the second consecutive year. It also maintains a reserve of $2.25 billion USD, covering more than 2.5 years of preferred stock dividends and interest obligations, providing additional stability amid market fluctuations.

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The recent dip in the major cryptocurrency has renewed concerns about corporate exposure to BTC. Popular investor Michael Burry recently claimed that Bitcoin’s behavior as a speculative asset, rather than a hedge, could pose significant risks to companies holding large BTC government bonds. He noted that further price declines could leave major investors, including Strategy, deeply underwater and potentially limit access to capital markets, adding to financial stress.

Losses increase in the fourth quarter

Meanwhile, Strategy’s operating losses for the quarter were found to be $17.4 billion, entirely due to unrealized losses on digital assets, compared to an operating loss of $1.0 billion in the fourth quarter of 2024 under the previous accounting model.

Net loss for the quarter was $12.4 billion, compared to $670.8 million in the same period of 2024. Cash and cash equivalents increased to $2.3 billion from $38.1 million, largely due to the establishment of the USD Reserve.