Strategy’s 713K BTC Causes $17.4B Paper Loss; $2.25B Cash Reserve Seeks to Shield Payouts

Strategy Inc (MicroStrategy‑style firm) reported a record Q4 2025 net loss of roughly $12.4–12.6 billion after Bitcoin fell more than 20% from its early‑October peak. The company holds 713,502 BTC acquired for about $54.26 billion (average cost ≈ $76,052 per BTC), leaving an unrealized paper loss of about $17.4 billion as BTC traded in the $60k–$88.5k range and briefly dipped lower. Strategy raised roughly $25.3 billion in 2025 via equity and preferred offerings and added over 200,000 BTC to its treasury, doubling down on accumulation despite heightened volatility. Q4 revenue edged up to $123 million year‑on‑year, helped by its business intelligence unit, while net loss reflected large mark‑to‑market swings in BTC value. Management said they hold $2.25 billion in cash to cover dividend and interest obligations for about 2–2.5 years at current run‑rates and noted no major debt maturities until 2027; the company carries around $8.2 billion in convertible debt (≈13% net leverage). Shares plunged about 17% in after‑hours trading and are down over 30% from late‑2025 highs amid investor concerns about dilution, leverage and further markdowns. For traders: the firm’s concentrated BTC exposure makes it highly sensitive to Bitcoin price swings — negative price action can force repeated large mark‑to‑market losses and weigh on market sentiment toward BTC‑linked equities; however, the stated cash buffer and deferred maturities reduce immediate liquidation risk. Key SEO keywords: MicroStrategy, Bitcoin treasury, BTC holdings, unrealized losses, cash reserve, dilution, MSTR stock.