According to Bloomberg, Strategy Inc. could record losses of up to billions of dollars in the fourth quarter of 2025 due to a sharp decline in the value of its Bitcoin holdings. PANews, citing this information on January 4th, reported that a 24% drop in Bitcoin's value towards the end of the year has resulted in a significant accounting loss for Strategy, even though it hasn't actually sold any assets.
If this scenario unfolds, the entire profit of approximately $2.8 billion that Strategy recorded last quarter thanks to the surge in Bitcoin could be wiped out in just one quarter. This raises new concerns about Strategy's increasing dependence on Bitcoin price fluctuations, especially given that the company's Capital capitalization is now approaching the value of the Bitcoin it holds on its balance sheet.
In recent times, Strategy has often been XEM by the market as a "Bitcoin proxy" on the stock market, with its stock price movements almost inversely mirroring BTC price fluctuations. Therefore, when Bitcoin experienced a significant correction, many investors worried that the company might be forced to sell off Bitcoin to ensure liquidation or financial stability. In response to these concerns, Strategy proactively built a cash buffer by issuing and selling additional common stock on December 1st, thereby increasing cash reserves to reduce the pressure to sell Bitcoin in the short term.
