Strategy Inc Reports $12.4 Billion Net Q4 Loss After $17.4 Billion Bitcoin Write-Down
Strategy Inc posted Q4 revenue of $123.0 million, up 1.9% year-over-year, but reported a net loss of $12.4 billion after marking its Bitcoin holdings down. The company recorded $17.4 billion in unrealized Bitcoin losses despite boosting its Bitcoin treasury to 713,502 coins at an average cost of $76,052.
1. Q4 Financial Results
Strategy Inc delivered Q4 revenue of $123.0 million, a 1.9% increase year-over-year. The company reported a net loss of $12.4 billion, or $42.93 per share, compared with a $670.8 million net loss, or $3.03 per share, in the prior-year period.
2. Bitcoin Mark-to-Market Impact
Unrealized mark-to-market losses on Bitcoin totaled $17.4 billion as Bitcoin’s average price fell 23.3% to $87,509 during the quarter. Despite the write-down, Strategy Inc increased its Bitcoin holdings to 713,502 coins at a total cost basis of $54.26 billion, averaging $76,052 per coin.
3. Business Segment Trends
Subscription services revenue surged 62.1% to $51.8 million, while product licenses grew 26.3% to $59.6 million. Offsetting these gains, product support revenue declined 16.9% to $48.5 million and other services fell 1.8% to $14.9 million.