When it comes to the cryptocurrency market, Strategy (formerly Microstrategy) is facing significant challenges as Bitcoin's value drops to $64,000. This dramatic decline has led to a staggering net loss of $12.4 billion for the company in the fourth quarter of 2025, following a steep drop from approximately $120,000 to around $89,000 during that timeframe, as highlighted by reports from CoinDesk.
As the selloff continues, Bitcoin's price slipped further this week, hitting about $64,000 on Friday, which coincided with a 17% plunge in Strategy's stock during Thursday's trading session. The firm, under the leadership of Executive Chairman Michael Saylor, possesses an impressive stash of over 700,000 BTC.
Recent data compiled by Artemis and shared by Decrypt reveals that Strategy is currently grappling with about $9.2 billion in unrealized losses, a situation exacerbated by the ongoing decline in digital assets. In particular, the company's fourth-quarter results reflect the stark reality of its Bitcoin exposure: as reported by CoinDesk, Bitcoin's value decreased markedly from around $120,000 on October 1 to approximately $89,000 by the end of the year.
In the days leading up to the release of these results, Bitcoin experienced another sharp drop, plummeting to around $64,000, prompting one of the most challenging sessions for Strategy shares in years, which saw a further decline of 0.97% during after-hours trading.
Notably, Strategy stands out as the largest corporate Bitcoin holder, with a total of 713,502 BTC purchased at an average price of $76,052. The company has made several billion dollars in acquisitions since the conclusion of the fourth quarter, and it concluded the year with $2.25 billion in cash, sufficient to cover 2.5 years' worth of preferred dividends and interest payments on debt.
Decrypt points out that with Bitcoin trading around $63,000 on Thursday, Strategy’s Bitcoin holdings were valued at approximately $45.4 billion, despite the firm having spent $54.2 billion on Bitcoin since 2020. This scenario is even more alarming considering that the asset’s price had dipped below Strategy’s average purchase price earlier in the week.
As we examine the broader landscape of digital asset treasuries, it's clear that many are facing significant unrealized losses. According to Artemis data cited by Decrypt, Strategy's paper losses total around $9.2 billion, while BitMine Immersion Technologies (BMNR) is down approximately $8.4 billion on its Ethereum investments. At the time of writing, Bitcoin had declined by 8% within the past 24 hours and 22% over the past week, settling around $64,608, while Ethereum saw an even steeper drop of nearly 31% over the same period, landing at about $1,904.
Artemis’ dashboard indicates that the total paper losses across various digital asset treasuries exceed $25 billion. This includes roughly $1 billion in losses for Solana-focused Forward Industries and more than $100 million for companies investing in Hyperliquid (HYPE) and BNB. Following these trends, BMNR shares fell by 14% on Thursday, reaching a seven-month low of about $17.04, according to Decrypt.
In light of these developments, Saylor recently reiterated his two guiding principles on social media: "1. Buy Bitcoin. 2. Don’t sell Bitcoin." However, it’s worth noting that he previously mentioned wanting to clarify that the firm was not opposed to selling BTC to fund dividends, showcasing the evolving narrative surrounding the company’s strategy.
Interestingly, prediction markets are indicating an increasing likelihood that Strategy may consider selling some of its 713,502 BTC this year, with bets on this happening rising to 32% over the last week. This speculation brings to light skepticism regarding the sustainability of the digital asset treasury model.
Bloomberg's Joe Weisenthal remarked on the situation, suggesting that the rapid growth of Digital Asset Treasury (DAT) companies last year—where crypto holders exchanged their tokens for inflated equity—might have been a final surge for the industry. Additionally, Decrypt noted criticisms from industry insiders, including interim CEO of SOL Strategies, Michael Hubbard, who expressed doubts about the viability of digital asset treasuries, predicting that staking ETFs could potentially undermine them.
What are your thoughts? Do you believe that firms like Strategy will adapt and thrive amidst these challenges, or do you think the digital asset treasury model is fundamentally flawed? Share your thoughts in the comments!
