Strategy executives Phong Le and Andrew Kang have stated that the company remains financially strong, despite suffering a significant 17.5% drop in its Bitcoin holdings. The company reported a staggering net loss of $12.4 billion for the fourth quarter of 2025, largely attributed to Bitcoin's sharp 22% decline during the same period. Bitcoin peaked at $126,000 in early October but fell to under $88,500 by December 31. This year alone, Bitcoin has dropped 30%, currently sitting at $64,500, which is below Strategy’s average cost of $76,052 per Bitcoin.

Despite these losses, Strategy (MSTR) noted a 1.9% year-on-year increase in Q4 revenues, reaching $123 million, aided by its business intelligence sector. However, the sell-off in Bitcoin prices led to a 17% drop in Strategy’s shares, closing at $107. The latest decline in Bitcoin saw it dip to a low of $62,500, impacting Strategy’s substantial Bitcoin holdings of 713,502 coins.

In light of the loss, CFO Andrew Kang reassured investors about the company’s financial standing. He emphasized that Strategy's capital structure is “stronger and more resilient” than ever. The company has increased its cash reserves to $2.25 billion in Q4, which could cover dividend payouts for the next 30 months, indicating a robust financial position despite the market’s volatility.

Furthermore, Strategy has no major debt obligations maturing until 2027, alleviating immediate pressure to liquidate Bitcoin to address any debts. CEO Phong Le expressed confidence during an earnings call, stating there was no reason for panic regarding the company’s financial health and Bitcoin strategy. He reiterated that Strategy’s enterprise value remains above its $45 billion Bitcoin reserve, with its $8.2 billion of convertible debt representing only around 13% net leverage, well below many S&P 500 companies.

The recent downturn in Bitcoin prices has raised concerns among investors, but Strategy's leadership has shown determination to navigate through these challenging times. The executives are confident in their long-term Bitcoin strategy, emphasizing their commitment to maintaining their holdings and exploring opportunities in the evolving digital asset landscape. As the market continues to face uncertainty, Strategy aims to reassure stakeholders of its resilience and capacity to adapt.

In a landscape marked by rapid changes, Strategy's focus on building a digital fortress through its Bitcoin acquisitions and strategic financial planning sets it apart. The company’s proactive measures, including enhancing cash reserves and prudent debt management, position it well to weather the storm of market fluctuations. Investors will be keen to see how Strategy evolves its strategy in response to the ongoing developments in the cryptocurrency market.