Strategy reported a wider fourth-quarter loss on Thursday, as a turbulent period for digital assets caused the world's largest hoarder of bitcoin to record losses on its holdings.
Shares of the Michael Saylor-led company rose 1.8% in after-hours trading, extending heavy selling from earlier in the day. They are down nearly 30% this year.
In December, Strategy had slashed its 2025 earnings forecast, citing a weak run in bitcoin, and announced plans to create a reserve to support dividend payments. Its earlier estimate assumed bitcoin would hit $150,000 by the end of the year.
Cryptocurrencies, led by bitcoin, enjoyed regulatory embrace and healthy institutional inflows through much of 2025.
However, the volatile sector has now struggled for months since a record crash last October sent bitcoin tumbling from a peak as leveraged positions were washed out.
Bitcoin, currently trading at $64,000, has nearly halved since its October 6 peak.
U.S. spot bitcoin ETFs witnessed outflows about $2 billion and $7 billion in December and November, respectively, Deutsche Bank analysts said in a note to clients.
Selling pressure intensified after Trump nominated Kevin Warsh as the next Federal Reserve chair, which analysts have said could lead to a smaller Fed balance sheet - a negative for risk assets like cryptocurrencies.
Strategy's loss was $12.4 billion, or $42.93 per share, for the three months ended December 31, compared with a loss of $670.8 million, or $3.03 per share, a year earlier.
It held 713,502 bitcoins as of February 1, at a total cost of $54.26 billion, or $76,052 per bitcoin.
Shares of the company fell about 47.5% in 2025, while bitcoin prices fell 6.4%, reflecting the leveraged exposure the stock provides to the cryptocurrency.
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