Strategy Inc. ($MSTR) reported a $17.44 billion unrealized loss in the fourth quarter after a decline in bitcoin prices reduced the fair value of its cryptocurrency holdings, following the company’s adoption of fair-value accounting for digital assets.
- The unrealized loss was tied to Strategy’s bitcoin holdings, which totaled 673,783 BTC as of January 4, 2026.
- The company adopted new accounting standards in 2025 requiring bitcoin holdings to be marked to market, resulting in large quarterly profit and loss swings.
- Strategy recorded a $5 billion deferred tax benefit in the most recent quarter, according to a U.S. SEC filing.
- During the final days of December 2025 and early January 2026, Strategy acquired 1,286 bitcoin for approximately $116.3 million through at-the-market equity sales.
- As of December 31, 2025, digital assets were carried at $58.85 billion, with a $2.25 billion cash reserve and $41.5 billion available for future equity issuance.
- Strategy shares have declined nearly 70% from their November 2024 peak, with mNAV falling to just above 1.
Relevant Companies
- Strategy Inc. ($MSTR): Financial results are directly affected by changes in the fair value of its bitcoin holdings.
Editor’s Note: This is a developing story. This article may be updated as more details become available.
