{"id":94000,"date":"2026-02-06T10:34:27","date_gmt":"2026-02-06T07:34:27","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=94000"},"modified":"2026-02-06T11:41:44","modified_gmt":"2026-02-06T08:41:44","slug":"hodl-strategy-reports-12-6bn-loss","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/hodl-strategy-reports-12-6bn-loss\/","title":{"rendered":"&#8216;HODL&#8217;: Strategy reports $12.6bn loss"},"content":{"rendered":"<p><a href=\"https:\/\/forklog.com\/en\/news\/bitcoin-falls-below-70000-for-the-first-time-since-2024\">A deep market correction<\/a> has translated into multi-billion losses for Strategy, the largest corporate holder of bitcoin. That is according to <a href=\"https:\/\/www.strategy.com\/press\/strategy-announces-fourth-quarter-2025-financial-results_02-05-2026\">the report<\/a> from the company founded by <a href=\"https:\/\/forklog.com\/en\/news\/michael-saylor-the-microstrategy-founders-biography-and-views\">Michael Saylor<\/a>.<\/p>\n<p><!--more--><\/p>\n<p>Operating loss reached $17.4bn, driven mainly by unrealised losses on bitcoin reserves. Net loss came in at $12.6bn, versus $671m a year earlier.<\/p>\n<p>MSTR shares ended the session around $107, slipping in after-hours to about $100. The stock has fallen more than 70% from last year\u2019s levels, shedding the premium investors had priced in.<\/p>\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/forklog.com\/wp-content\/uploads\/img-d9038f0e949b8f26-5579360255984336.webp\" alt=\"stocks\" class=\"wp-image-274740\"\/><figcaption class=\"wp-element-caption\">MSTR\u2019s share-price performance over the past year. Source: <a href=\"https:\/\/www.google.com\/finance\/quote\/MSTR:NASDAQ?sa=X&#038;ved=2ahUKEwi7j-HuncSSAxVfQ_EDHbpmHvMQ3ecFKAV6BAgrEAY&#038;window=1Y\">Google Finance<\/a>.\u00a0<\/figcaption><\/figure>\n<p>By Messari\u2019s estimate, Strategy\u2019s loss is on a par with those of giants such as AIG, Fannie Mae and Freddie Mac during the 2008 crisis.<\/p>\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/forklog.com\/wp-content\/uploads\/img-6ea5c10f61825a4f-5579389240231298-scaled.webp\" alt=\"messary\" class=\"wp-image-274741\"\/><figcaption class=\"wp-element-caption\">Comparison of Strategy\u2019s losses with AIG, AOL, Fannie Mae and Freddie Mac in 2008. Source: <a href=\"https:\/\/x.com\/Degenerate_DeFi\/status\/2019472713098883516?s=20\">X-\u0430\u043a\u043a\u0430\u0443\u043d\u0442 Stablecoin Intern<\/a>.<\/figcaption><\/figure>\n<p>The analyst added that February\u2019s bitcoin plunge brought an additional $14bn in unrealised losses. In all, the decline in asset values since year-end approached $31bn.<\/p>\n<p><iframe loading=\"lazy\" width=\"100%\" height=\"420\" frameborder=\"0\" src=\"https:\/\/www.theblock.co\/data\/treasuries\/bitcoin-treasuries\/strategy-mstr-bitcoin-holdings-vs-stock-price\/embed\" title=\"Strategy (MSTR) Bitcoin Holdings vs Stock Price\"><\/iframe><\/p>\n<p>As of early February, Strategy held 713,502 BTC on its balance sheet. The firm accumulated a large portion of its reserves during the late-2024 rally, when the price of digital gold briefly <a href=\"https:\/\/forklog.com\/en\/news\/bitcoins-surge-to-126000-revitalises-retail-investors\">rose above $126,000<\/a>. The average purchase price is about $76,000.\u00a0<\/p>\n<p>Just four months ago, when quotes were at record highs, the \u201cpaper\u201d profit of the \u201ctreasury giant\u201d reached $31bn.<\/p>\n<p>Michael Saylor <a href=\"https:\/\/x.com\/saylor\/status\/2019426255268204617\">responded<\/a> to the current situation with a laconic post on X: \u201c<span data-descr=\"a strategy of long-term holding of an asset, ignoring market volatility and panic sell-offs\" class=\"old_tooltip\">HODL<\/span>\u201d.<\/p>\n<h2 class=\"wp-block-heading\">Unless it drops to $8,000<\/h2>\n<p>Strategy\u2019s CEO, Phong Le, <a href=\"https:\/\/www.theblock.co\/post\/388774\/strategy-ceo-bitcoin-q4-earnings-call?utm_source=rss&#038;utm_medium=rss\">assured<\/a> investors of the company\u2019s balance-sheet resilience amid the market correction.<\/p>\n<p>On the fourth-quarter webinar, the executive clarified that risks to servicing debt would arise only under an extreme scenario: if bitcoin plunged to $8,000 and stayed there for 5\u20136 years.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;In the event of an extreme 90% drop in the bitcoin price\u2014to $8,000\u2014our reserves would equal our net debt. We would then be unable to redeem the convertible notes with bitcoin and would be forced to resort to restructuring, issuing additional shares or taking on new debt,&#8221; Le said.<\/p>\n<\/blockquote>\n<p><iframe loading=\"lazy\" width=\"100%\" height=\"420\" frameborder=\"0\" src=\"https:\/\/www.theblock.co\/data\/treasuries\/bitcoin-treasuries\/cumulative-market-cap-bitcoin-btc-holding-public-companies\/embed\" title=\"Stacked Market Caps of Bitcoin Treasury Companies\"><\/iframe><\/p>\n<p>CFO Andrew Kang emphasised the company\u2019s commitment to a long-term approach, adding:<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;Even amid volatility, we continue to execute the strategy.&#8221;<\/p>\n<\/blockquote>\n<p>Saylor backed the point.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;Such quarterly swings can be sharp and unsettling. But it is important to stress that our strategy is long-term. It is designed to withstand short-term volatility and even the extreme conditions we are seeing today,&#8221; he said.<\/p>\n<\/blockquote>\n<p>The founder of Strategy urged investors to focus on positive fundamentals, including <a href=\"https:\/\/forklog.com\/en\/news\/fdic-unveils-initial-stablecoin-regulations-under-genius-act\">favourable regulatory shifts<\/a>.<\/p>\n<h2 class=\"wp-block-heading\">The quantum threat<\/h2>\n<p>Saylor also addressed <a href=\"https:\/\/forklog.com\/en\/news\/benchmark-quantum-threat-to-bitcoin-overstated\">the quantum threat to bitcoin<\/a>. The executive rejected the immediacy of the risks, calling them part of a \u201cparade of horrible <span data-descr=\"an acronym for the English Fear, Uncertainty and Doubt\" class=\"old_tooltip\">FUD<\/span>\u201d.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;The consensus is that it will take at least ten years before a real threat emerges. The technology is promising, but still at an early stage,&#8221; he noted.<\/p>\n<\/blockquote>\n<p>He stressed that quantum computers pose risks not only to bitcoin. The threat also applies to the financial and defence sectors, which depend on traditional cryptography.<\/p>\n<p>According to Saylor, significant funds are already being invested in protective protocols. The bitcoin network will receive the necessary upgrades through \u201cglobal consensus\u201d.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;Bitcoin is upgradable; it can be made more secure. We believe humanity will rise to the challenge and find rational technical solutions,&#8221; the founder of Strategy said.<\/p>\n<\/blockquote>\n<p>To build consensus on quantum resilience, the company will launch the Bitcoin Security programme. The initiative envisages collaboration with cybersecurity experts and the crypto community.<\/p>\n<p>Saylor also pointed to the firm\u2019s \u201cstrong position\u201d:<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;We have effective governance, solid collateral and a responsible structure. This allows us to weather difficult months, quarters and even cycles lasting several years. We have done this before and are ready to continue in the future.&#8221;<\/p>\n<\/blockquote>\n<p>In December, Strategy head Phong Le <a href=\"https:\/\/forklog.com\/en\/news\/microstrategy-ceo-on-bitcoin-fundamentals-couldnt-be-better\">stressed<\/a> that he did not worry much about bitcoin\u2019s short-term moves.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A deep market correction has translated into multi-billion losses for Strategy, the largest corporate holder of bitcoin.<\/p>\n","protected":false},"author":1,"featured_media":94001,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"Strategy reports $12.6bn loss as bitcoin slump hits reserves; Saylor: \"HODL\".","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[480,1207,1252,1221],"class_list":["post-94000","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-bitcoin-price","tag-microstrategy","tag-reports","tag-stocks"],"aioseo_notices":[],"amp_enabled":true,"views":"193","promo_type":"1","layout_type":"1","short_excerpt":"Strategy reports $12.6bn loss as bitcoin slump hits reserves; Saylor: \"HODL\".","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/94000","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=94000"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/94000\/revisions"}],"predecessor-version":[{"id":94002,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/94000\/revisions\/94002"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/94001"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=94000"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=94000"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=94000"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}