Strategy loses $7B after missing Bitcoin profit

Catastrophic $7 billion wipeout as Strategy's losses soar and core revenue collapses

  • Strategy reported a catastrophic fourth-quarter diluted loss of $42.93 per share, a year-over-year increase of 1,316%.
  • The company’s market capitalization evaporated by another $7 billion in a single day as its stock price plunged below $102.
  • Revenue from its core enterprise software business plummeted 48%, while its Bitcoin yield for shareholders has slowed to just 0.3% year-to-date.

On February 5, 2026, Strategy (formerly MicroStrategy) and its shareholders endured a financial catastrophe exceeding even the historic $6 billion single-day loss CEO Michael Saylor experienced in March 2000. The company’s stock opened at a 52-week low and then declined another 20% by the evening, incinerating $7 billion in market value within 24 hours. This devastating drop followed the release of financial results showing a $42.93 per share diluted loss for Q4 2025.

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Consequently, the company posted a staggering $15.23 per share loss for the entire 2025 calendar year. Its operating loss for the quarter ballooned to $17.4 billion, which was 16.4 times higher than the same period last year. The opportunity cost from missed profits also grew from $33 billion to $39 billion in just one day.

Meanwhile, the company’s actual operating business suffered severely, with revenues from product licenses plummeting 48% year-over-year. Capital-raising efforts remained dependent on diluting common stock, which comprised 79% of recent at-the-market sales. Furthermore, dividend payments to preferred shareholders extracted an additional $381.3 million from the company in 2025.

The firm’s flagship preferred share series, Stretch, traded 6.3% below its $100 target despite an 11.25% dividend. Internal selling pressure continued as former general counsel Shao Wei-Ming sold another 3,000 shares. Ultimately, the key metric of bitcoin accretion per common share has slowed to a crawl, reaching just 0.3% year-to-date.

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