Why is the Strategy, which lost $17.4 billion, still疯狂ly increasing its Bitcoin holdings?

Strategy (formerly MicroStrategy) delivered a seemingly “disastrous” report card in 2025: a Q4 unrealized loss of $17.4 billion, an annual total unrealized loss of $5.4 billion, and a stock price plummeting 47.5%. However, the company’s CEO Michael Saylor continued to “add to” his position at the start of the new year—spending $116 million to acquire an additional 1,287 bitcoins last week. Behind this seemingly contradictory move lies a deep understanding of the crypto market.

The Truth Behind the Numbers

Strategy’s “losses” need careful interpretation. The $17.4 billion is an unrealized loss, not actual cash lost. This figure arises from Bitcoin market fluctuations.

The key point here: Although Strategy experienced unrealized losses in Q4, as of now, its Bitcoin investment has realized an unrealized gain of $11.975 billion. What does this indicate? It shows that Strategy isn’t losing money but is experiencing normal market volatility.

Why Continue to Increase Holdings

Last week, Strategy added 1,287 bitcoins at an average price of $90,316. This decision reveals several signals:

Confidence in Long-Term Value

Strategy’s management clearly believes that current Bitcoin prices, still near historical highs (close to $100,000), remain attractive. They are not going all-in at the bottom but are steadily and disciplinedly increasing their position. This approach, known in institutional investing as “dollar-cost averaging,” involves regularly adding to holdings regardless of short-term price fluctuations.

Rational Approach to Market Volatility

The $17.4 billion unrealized loss in Q4 might be a nightmare for ordinary investors. But for Strategy, it’s just a fluctuation on paper. The real importance lies in their not panicking and selling during market swings—instead, they continue to accumulate. This reflects the maturity of institutional investors.

Execution of Long-Term Strategy

Strategy has positioned itself as a “Bitcoin company.” Holding 673,783 BTC (3.21% of the global supply) is not just an asset allocation but a strategic choice. Michael Saylor repeatedly emphasizes Bitcoin’s long-term value, and the company’s incremental buying is a concrete implementation of this philosophy.

Market Reaction

Interestingly, the market has recognized Strategy’s approach. On January 5, when U.S. stocks opened, crypto-related stocks surged, with Strategy (MSTR) rising 4.35%. This indicates that investors believe in the company’s strategic direction.

This is not simply a “bottom-fishing” move but a long-term institutional allocation. Strategy is showing the market with action: we believe in Bitcoin’s future. Even with short-term volatility, we stick to this path.

Summary

Strategy’s story actually revolves around a classic investment philosophy: short-term volatility vs. long-term value. The $17.4 billion unrealized loss sounds alarming, but it’s just an on-paper figure. What truly matters is that Strategy remains steadfast amid fluctuations and continues to increase its holdings, which demonstrates their confidence in Bitcoin’s long-term value.

From this perspective, the 47.5% stock price decline actually provides more opportunities for institutional investors—they can buy Strategy’s stock at a lower price while enjoying the long-term benefits of the company’s ongoing Bitcoin accumulation. This “persisting through pessimism” strategy is often a hallmark of big winners.