Strategy may face billions of dollars in losses in Q4 2025 due to a decline in Bitcoin holdings value

According to Bloomberg, Strategy may disclose a loss of several billion dollars in the fourth quarter of 2025, as the group's approximately $60 billion Bitcoin assets declined by 24% in Q4, potentially resulting in massive unrealized losses.

If true, this means Strategy could wipe out the $2.8 billion profit recorded in the previous quarter due to a sharp drop in Bitcoin prices. As the company's enterprise value nears falling below the value of its Bitcoin holdings, concerns have arisen in the market that the group may need to sell its Bitcoin.

To alleviate these concerns, Strategy established cash reserves on December 1st through the sale of common stock. Earlier, Strategy expected its full-year operational performance to range from a $7 billion loss to a $9.5 billion profit, assuming Bitcoin trading prices stay between $85,000 and $110,000.