Saylor-led Strategy's Q3 losses increase amid bitcoin troubles

• Strategy holds 713,502 bitcoins as of February 1 at a total cost of $54.26 billion ($76,052 per bitcoin), resulting in a loss of $42.93 per share
• U.S. spot bitcoin ETFs experienced combined outflows of approximately $9 billion in November and December amid market turbulence
• Trump's nomination of Kevin Warsh as Fed chair intensified selling pressure, with analysts predicting a smaller Fed balance sheet that would negatively impact risk assets like cryptocurrencies

Summary: Strategy Reports Wider Q4 Loss Amid Bitcoin Downturn

Key Financial Results:

Strategy reported a significant Q4 loss of $12.4 billion, or $42.93 per share, driven by declining bitcoin valuations. The company holds 713,502 bitcoins as of February 1, acquired at a total cost of $54.26 billion ($76,052 per bitcoin average cost).

Market Context:

Bitcoin has experienced severe turbulence, currently trading at $64,000—nearly half its October 6 peak. The cryptocurrency crashed last October as leveraged positions unwound, triggering sustained selling pressure through year-end.

U.S. spot bitcoin ETFs recorded massive outflows of approximately $7 billion in November and $2 billion in December, according to Deutsche Bank analysts.

Company Actions:

In December, Strategy revised downward its 2025 earnings forecast, which had initially assumed bitcoin would reach $150,000 by year-end. The company also announced plans to establish a reserve for dividend payment support.

Market Drivers:

The downturn follows an initially positive 2025 environment featuring regulatory support and institutional inflows. However, sentiment deteriorated after President Trump nominated Kevin Warsh as Federal Reserve chair. Analysts suggest Warsh's appointment could lead to a smaller Fed balance sheet, negatively impacting risk assets including cryptocurrencies.

Implications:

As the world's largest corporate bitcoin holder, Strategy's substantial losses underscore the volatility risks in cryptocurrency exposure. The company's performance serves as a barometer for institutional crypto investment strategies amid uncertain monetary policy and weakening market sentiment.