Strategy (MSTR) Q4 2025 earnings summary

Executive summary

• Ended 2025 with 713,502 Bitcoin, representing 3.4% of all Bitcoin ever to exist, and raised $25.3B in capital, reinforcing position as the largest corporate holder and US equity issuer.

• Adopted fair value accounting for Bitcoin holdings, aligning carrying value with market value each quarter and increasing transparency.

• Achieved MSCI index inclusion and received the first S&P credit rating for a Bitcoin treasury company.

• Established a $2.25B USD Reserve in Q4, providing over 2.5 years of dividend and interest coverage.

• STRC digital credit instrument scaled to $3.4B, with a current dividend rate of 11.25% and $413M in cumulative distributions.

Financial highlights

• Q4 2025: Operating loss of $17.4B, net loss of $12.4B, driven by a $17.4B unrealized loss on digital assets due to Bitcoin price decline.

• Full year 2025: Operating loss of $5.4B, net loss of $4.2B; results within target guidance based on year-end Bitcoin price.

• Delivered BTC Yield of 22.8% for 2025, exceeding the lower end of the 22%-26% target range, with a BTC dollar gain of $8.9B.

• Annual revenue from software business reached $477M in 2025, with Q4 revenues up 1.9% YoY and subscription services up 62.1%.

• Cash and cash equivalents rose to $2.3B at year-end 2025 from $38.1M a year earlier.

Outlook and guidance

• Focus remains on systematically increasing Bitcoin per share and compounding shareholder value over the long term.

• Guidance models project potential to double Bitcoin per share over seven years, targeting 5%-14% annual BTC Yield depending on digital credit sales and market conditions.

• Return of capital (ROC) distributions on preferred equity expected to continue for at least ten years.

• STRC dividend rate will be evaluated monthly based on trading price, with a structured framework for adjustments.