Strategy faces $7.5B unrealized loss as Bitcoin sinks near $65K ahead of Q4 earnings

Strategy, the largest corporate Bitcoin treasury holder, is heading into its fourth-quarter earnings report under pressure as Bitcoin falls toward $65,000, deepening unrealized losses on its massive BTC holdings.

The company holds approximately 713,000 BTC, acquired at an average price of $76,000, according to its latest filing. With Bitcoin trading around $65,500, that implies a paper loss of $7.5 billion, or a 14% drawdown. The filing also disclosed a fresh purchase of 855 BTC on Monday.

The market response has been swift. Strategy shares plunged 14% on Thursday, dropping to around $110, a level not seen since August 2024.

The losses come just hours before the firm’s Q4 2025 earnings release, scheduled for after market close. Analysts are forecasting EPS of -$0.08 on $118.81 million in revenue, down from $8.42 EPS and $128.69 million in revenue the previous quarter.

The projected decline highlights the company’s deep correlation to Bitcoin’s price and recent volatility.

Strategy’s capital-raising model relies on issuing equity to buy more Bitcoin. Despite the downturn, the company continues to trade at a modest premium to its net asset value, with an mNAV multiple of approximately 1.09.

That suggests Strategy can still raise capital without immediate dilution to shareholders. However, the company faces mounting scrutiny over whether that model remains viable in a drawdown.

Investors are now waiting to hear what Michael Saylor will say on the earnings call, as markets remain in a broad downturn and concerns grow over the firm’s Bitcoin-heavy strategy.