Strategy (NASDAQ:MSTR) shares surged on Friday following the release of the company’s fourth quarter earnings report, which showed solid growth in its software and subscription business offset by a massive accounting-driven loss tied to its Bitcoin holdings.
Total revenue for Q4 came in at $123 million, up roughly 2% year over year and above the Wall Street consensus of around $119 million, reflecting strength in the company’s higher-margin subscription and license revenue.
Subscription services revenue grew more than 60% year over year, while combined license and subscription revenue rose over 25%, highlighting continued traction in the cloud and software side of the business.
Despite the top-line growth, Strategy posted an operating loss of $17.4 billion and a net loss of $12.4 billion, or $42.93 per share, far more than the $0.08 loss per share expected by analysts.
These losses were largely driven by an unrealized impairment on the company’s about 713,500 Bitcoin holdings, acquired at an average cost of about $76,000 per coin. Bitcoin’s price fell from roughly $120,000 in early October to around $89,000 by the end of the year, magnifying the accounting impact.
Strategy’s capital markets activities remained robust in 2025. The company was the largest US equity issuer for the year, raising $25.3 billion, including $5.5 billion through five preferred stock IPOs. Its Digital Credit platform, with an aggregate stated amount of $3.4 billion, continues to generate distributions, with a current dividend rate of 11.25%.
As of early February 2026, Strategy’s Bitcoin holdings were valued at roughly $59.8 billion, reflecting a market price of about $83,740 per coin. The company reported a full-year Bitcoin yield of 22.8%, in line with its updated target range, and a realized Bitcoin gain of approximately $8.9 billion.
“We raised $25.3 billion of capital in 2025 to advance our Bitcoin treasury strategy, making us the largest equity issuer among U.S. public companies for a second consecutive year,” Strategy CEO Phong Le said in a statement. “In 2026, we remain focused on expanding STRC to generate amplification and drive growth in Bitcoin Per Share (BPS) for MSTR common stock investors.”
Investors appeared to focus on the strength of Strategy’s underlying business, sending the company's shares up 15% at about $123 shortly after the opening bell in New York.