Strategy, the company led by Michael Saylor, disclosed a $17.44 billion unrealized loss on its digital asset holdings in the fourth quarter, reflecting a sharp decline in the value of its large bitcoin stockpile.
The loss underscores the volatility facing companies that hold cryptocurrencies on their balance sheets. Strategy’s shares fell about 47.5% in 2025, as fluctuations in crypto markets weighed heavily on the company’s balance sheet and reported earnings.
For the full year ended December 31, 2025, Strategy reported an unrealized loss of $5.40 billion on digital assets. In December, the company also cut its earnings forecast for 2025, citing sustained weakness in Bitcoin prices.
Companies with significant exposure to bitcoin and other digital tokens have come under renewed pressure in recent weeks amid heightened market volatility. Strategy, the world’s largest corporate holder of bitcoin, has been particularly sensitive to these swings due to the scale of its holdings.
The company said that as of January 4, 2026, it held $2.25 billion in U.S. dollar reserves. Strategy maintains this cash reserve to support dividend payments on its preferred stock and to cover interest obligations on its outstanding debt.
Despite the recent losses, Strategy has continued to position bitcoin as a core long-term asset on its balance sheet, even as investors remain cautious about the impact of crypto price movements on the company’s financial performance.