Bitcoin-treasury firm Strategy reported a huge $12.4 billion loss for Q4 2025 as crypto markets slid, but the company leaders tried to calm worried investors.
As revealed during the earnings call, the co-founder Michael Saylor, CEO Phong Le, and CFO Andrew Kang again emphasized the focus of the company on its long-term plan of accumulating Bitcoin, as opposed to reacting to changes in Bitcoin’s price.
They have urged investors to be patient and not lose sight of the bigger picture despite the recent downturn. Saylor even quoted The Hitchhiker’s Guide to the Galaxy, jokingly reminding listeners to “Don’t panic.”
The overall tone from management was clear that while the current market has been rough, they believe sticking to their strategy will pay off if crypto prices eventually recover.
Bitcoin fall hurts Strategy’s balance sheet
Strategy’s latest quarterly results came out just as Bitcoin prices were taking a sharp hit, adding to the pressure on the company.
The cryptocurrency was trading around $63,928 on Thursday afternoon in New York, after dropping 13 percent in a single day and nearly 49 percent from its October high of $126,080.
Since Strategy holds a large amount of Bitcoin, the price slide has had a clear impact on how investors view the company. Markets reacted quickly, with shares of the Nasdaq-listed firm (MSTR) falling more than 17 percent by the end of Thursday’s trading session.
The drop shows how closely Strategy’s performance is tied to Bitcoin’s ups and downs, especially during periods of heavy volatility.
Saylor’s market legacy now under threat?
Michael Saylor, co-founder of the company once known as MicroStrategy, has spent the past six years turning it into one of the biggest corporate holders of Bitcoin.
Instead of focusing only on software, the firm raised billions through stock sales and debt to keep buying more crypto.
By Feb. 1, it held a massive 713,502 bitcoins. As crypto prices rose, and Strategy’s stock was among the high performers, other publicly listed companies started to follow Saylor’s playbook, looking at Bitcoin as a probable long-term treasury asset.
What began as a bold shift had gradually morphed into an increasingly wider trend, with more firms experimenting with keeping crypto on their balance sheets and hitching part of their fortunes to the market performance of Bitcoin.
However, the current downturn in the market has put many crypto treasury firms on shaky grounds, with many even considering a slight sell-off to protect their balance sheet.