Strategy Doubles Down on Bitcoin as Losses Grow but Conviction Holds

Strategy has once again shown its unwavering belief in Bitcoin (BTC), even as market pressure deepens and losses mount on paper. 

Falling prices have worried investors and pushed the company’s stock down. However, the leadership team says its long-term Bitcoin strategy has not changed.

Strategy Leadership Stands Firm Despite Heavy Losses

After reporting a net loss of $12.4 billion in the fourth quarter of 2025, Strategy’s executive chairman Michael Saylor and CEO Phong Le addressed concerns head-on during the earnings call. They stressed that the losses remain unrealized and do not threaten the company’s ability to operate or meet obligations.

Strategy currently holds 713,502 Bitcoin and at current price of nearly $65,000, these holdings are valued at about $45.5 billion. This translates into an unrealized loss of nearly $8.5 billion. Even with this decline, management reiterated that the company has no intention of selling its massive Bitcoin stash.

Phong Le emphasized that liquidation risk only becomes real under extreme conditions. Management says Bitcoin would have to fall to about $8,000 and stay there for several years. Only then would the company struggle to meet its convertible note obligations.

Strategy also maintains a cash reserve of about $2.25 billion, which management says is enough to cover all debt and dividend payments. This buffer, along with long-term debt and flexible financing options, gives the firm room to survive even during extended periods of weakness.

Strategy Plans More Bitcoin Buys and Launches Security Program

Looking ahead, Strategy plans to continue raising capital to buy more Bitcoin. Phong Le confirmed that the company intends to keep issuing preferred stock in 2026. A key instrument in this plan is the STRC preferred share, which offers an annual dividend of 11.25% paid monthly.

Management views this approach as a way to attract income-focused investors while steadily increasing Bitcoin exposure. Beyond accumulation, Michael Saylor recently announced the launch of the Bitcoin Security Program. 

The initiative aims to work with cybersecurity experts and the broader Bitcoin community to address future risks, including those linked to quantum computing.

Saylor has previously stated that quantum computing threats remain many years away and form part of recurring fear narratives around Bitcoin. 

He believes early collaboration and research will help support the development of quantum-resistant upgrades and strengthen the network over time.

Saylor Highlights Pro-Bitcoin US Climate as Strategy Stock Slides

Saylor also pointed to a more supportive regulatory and political climate in the United States. He expressed confidence in the current administration’s pro-Bitcoin stance. He noted leadership appointments at the SEC, the Treasury Department, and other key agencies. 

This environment, in his view, supports long-term adoption and reduces policy risk for Bitcoin-focused companies. Despite management’s confidence, markets reacted sharply. 

Strategy’s stock fell more than 17% in a single day as Bitcoin dropped below $65,000, nearly 10% lower over the past 24 hours. The reported net loss, driven largely by a $17.4 billion unrealized loss, added to investor anxiety.