Strategy (MSTR) posted a fourth-quarter net loss of $42.93 per share, narrower than the Zacks Consensus Estimate loss of $46.02. This compares with a loss of $3.20 per share in the year-ago quarter. Total revenue of $123.4 million exceeded consensus forecasts by 8%, driven primarily by increased subscription and support sales for its analytics software platform. Operating expenses rose 12% year-over-year to $210 million, reflecting higher R&D spend on artificial intelligence features and expanded global sales headcount.

In the same quarter, Strategy recorded a $12.0 billion impairment loss on its Bitcoin holdings as the cryptocurrency’s market value declined sharply from all-time highs set in October. The write-down represents the largest quarterly impairment in the company’s history and drove over 90% of the total net loss. Chief Executive Michael Saylor reiterated the firm’s long-term commitment to Bitcoin accumulation, but acknowledged that near-term volatility will continue to weigh on quarterly results.

Strategy shares have broken below their 200-day moving average, a signal that long-term support has failed. Trading volume spiked 35% on the day of the breach, underscoring bearish investor sentiment. Short interest has climbed to 14% of float, the highest level since mid-2023, suggesting potential for further downward pressure. Technical analysts are targeting lower Fibonacci retracement levels near recent swing lows as potential next support zones.

As of quarter-end, Strategy held 713,502 Bitcoin, equivalent to roughly 3.4% of the 21 million coins that will ever exist. The company acquired 15,200 coins during the period at an average cost of $27,850 per Bitcoin. These purchases increased total investable assets on the balance sheet by $423 million. Management highlighted that ongoing accumulation at lower price levels has reduced the company’s weighted average cost basis by 7% since the prior quarter.