Strategy (NASDAQ:MSTR) revealed significant unrealized losses tied to its bitcoin position in a newly filed Form 8-K, pointing to a sharp decline in the value of its digital assets during the fourth quarter as cryptocurrency prices retreated.
For the full year 2025, the company reported an unrealized loss of $5.40 billion on its digital asset holdings, partially offset by a deferred tax benefit of $1.55 billion.
Volatility intensified in the final quarter of the year. For the three months ended December 31, Strategy recorded an unrealized loss of $17.44 billion, alongside a $5.01 billion deferred tax benefit, reflecting the steep drop in bitcoin prices over the period.
Bitcoin had traded above $124,000 in early October before sliding to below $90,000 by the end of 2025. The cryptocurrency has since recovered some ground in January, recently trading above $93,000.
At year-end, Strategy reported holding $58.85 billion in digital assets and disclosed a related deferred tax liability of $2.42 billion.
The company continued to build its bitcoin position into early 2026. Between January 1 and January 4, Strategy purchased 1,283 bitcoin for a total of $116.0 million, lifting total holdings to 673,783 bitcoin acquired at an aggregate cost of $50.55 billion.
These purchases were financed through ongoing sales under the company’s at-the-market equity offering program. The filing shows Strategy generated $195.9 million in net proceeds from stock sales between December 29 and December 31, followed by an additional $116.3 million between January 1 and January 4.
Strategy also disclosed that it held $2.25 billion in U.S. dollar reserves as of January 4, earmarked to support preferred dividend obligations and interest payments.