Bitcoin has slipped toward the 60,000 dollar level, pushing Strategy’s massive Bitcoin position below its purchase price.
Strategy, the largest corporate holder of Bitcoin globally, reported holdings of 713,502 BTC valued at roughly 59.75 billion dollars as of February 1. The firm’s total acquisition cost stands at 54.26 billion dollars, putting its average purchase price at 76,052 dollars per Bitcoin.
With Bitcoin trading well under that level, Strategy’s extensive crypto treasury is currently operating at an unrealized loss.
Pressure on the Treasury
Despite the price decline, Strategy delivered solid performance in 2025. The company posted a full year Bitcoin yield of 22.8 percent and added 101,873 BTC through gains. Treasury expansion continued into January 2026, when the firm purchased an additional 41,002 BTC.
Founded in 1989 as a data analytics software company, Strategy underwent a major transformation in 2020 when co founder Michael Saylor redirected its capital strategy toward Bitcoin. He viewed the asset as a more reliable store of value than cash during a period marked by aggressive stimulus and near zero interest rates. Bitcoin was soon adopted as the company’s primary long term treasury asset.
By 2025, the company rebranded as Strategy and fully committed to a Bitcoin first identity. This shift attracted scrutiny from regulators and index providers, who questioned whether a company with assets dominated by crypto should remain part of major equity indices. MSCI indicated that firms holding more than half of their assets in Bitcoin could be classified as non operating. Strategy countered that it actively deploys Bitcoin to raise capital and enhance shareholder value. Efforts to gain inclusion in the S&P 500 in September and December of 2025 were unsuccessful.
Even so, Bitcoin remains central to Strategy’s financial framework and is closely integrated with its digital credit products, particularly STRC. This instrument plays a key role in managing risk and amplifying capital. STRC has grown to 3.4 billion dollars, aided by improved liquidity and reduced volatility across crypto markets.
During 2025, Strategy raised 25.3 billion dollars to fund its Bitcoin treasury and preferred stock programs, making it the largest equity issuer in the United States for the second year in a row. The company also holds a 2.25 billion dollar USD Reserve, sufficient to cover more than two and a half years of preferred dividends and interest payments, adding a buffer against market volatility.
The recent downturn in Bitcoin prices has reignited debate around corporate exposure to the asset. Investor Michael Burry recently warned that Bitcoin often behaves more like a speculative investment than a hedge, which could create serious risks for companies with large holdings. He noted that further declines could push major holders, including Strategy, deeper into unrealized losses and potentially restrict access to capital markets, intensifying financial pressure.
Fourth Quarter Losses Widen
Strategy reported operating losses of 17.4 billion dollars for the quarter, entirely driven by unrealized digital asset losses. This compares with a 1.0 billion dollar operating loss in the fourth quarter of 2024 under the previous accounting approach.
Net loss for the quarter reached 12.4 billion dollars, a sharp increase from 670.8 million dollars a year earlier. Meanwhile, cash and cash equivalents rose significantly to 2.3 billion dollars from 38.1 million dollars, largely due to the creation of the USD Reserve.
