Key Highlights:
- Strategy announces that Bitcoin (BTC) would need to fall to $8,000 and stay there for five years to seriously affect its finance.
- The company has also set aside $2.25 billion in cash in case of emergencies.
- The company holds 713,502 BTC as of February 1, 2026.
Strategy Inc., a company that holds a large amount of Bitcoin, shared its Q4 2025 results and also a few bold statements that indicate their unwavering confidence in BTC. During this earnings announcement, the CEO of the firm, Phong Lee, stated that Bitcoin will have to drop all the way to $8,000 and stay there for five years to threaten the company’s balance sheet. This indicates that the company is fully committed to holding its BTC long term and is not worried about short-term price ups and downs.
Even though the CEO said that the balance sheet will not be affected till the said conditions, the firm has also created a cash reserve and has set aside about $2.25 billion in cash. This cash acts as an emergency fund, so that if there ever there is a need, then this cash can be used to pay bills, dividends, and interest without selling any of their Bitcoin.
Strategy’s Q4 2025 Results at a Glance
The above said statement was made during the firm’s announcement of its Q4 and full-year 2025 financial results. The results showed that the firm holds 713,502 BTC as of February 1, 2026, bought at an average price of about $76,000 per BTC. In 2025, the firm also raised $25.3 billion so that it can easily support its BTC strategy.
However, as the price of the token dropped, the firm also reported a huge quarterly loss, but it still held $2.3 billion in cash. As stated above, the company also set aside a $2.25 billion cash reserve and interest payments for around 2.5 years helping protect its finances during market downturns.
Its average buying price of $76,052 per Bitcoin shows the company kept buying through price ups down in 2025, supported by $25.3 billion raised from investors who still believe in Bitcoin despite tough economic conditions.
Paper Losses, Real Cash Cushion
The company also reported a $12.4 billion net loss in Q4 which was obviously because of the Bitcoin price fall and forced accounting write-down. These losses exist mostly on paper, not in the bank account. Despite the red ink, Strategy is far from broke, it’s sitting on $2.3 billion in cash and has another $2.25 billion stashed away to handle dividends and interest. That safety net is big enough to keep payments rolling comfortably until at least mid-2028.
How Strategy Stress-Tests Bitcoin Without Breaking
Strategy’s “Bitcoin at $8,000 for five years” test is basically a worst-case drill for folding BTC on a company balance sheet. Even in that nightmare scenario, the company says it would feel the pain on valuation but still survive, thanks to steady business income and low day-to-day spending. Analysts point out that Bitcoin has gone through long, ugly bear markets before, like 2018 to 2020, and those periods usually came right before massive price rebounds.
For crypto watchers, this report sends a clear message that the big institutions are in this for the long haul. With over 713,000 Bitcoin on its books, Strategy shows how companies are treating BTC like digital goals, not a quick trade.
Also Read: Strategy Acquires 13,627 Bitcoin as MSCI Index Decision
Source: https://www.cryptonewsz.com/strategy-8k-btc-break-balance-sheet/
