Strategy Inc (NASDAQ:MSTR) released its fourth-quarter financial results following market close on Thursday, presenting a series of positive financial achievements. However, the company's stock remained under pressure near its critical low levels, influenced heavily by the ongoing slump in Bitcoin prices.
In the quarter ending 2025, Strategy reported revenues totaling $122.99 million, surpassing the consensus analyst estimate of $118.48 million. Adjusted earnings per share came in at $16.37, a figure substantially exceeding the anticipated $10.96, signaling efficient operational management amidst challenging market conditions. This revenue figure represented a modest 1.9% increase compared to the same period the previous year.
Breaking down the revenue streams, subscription services stood out prominently, generating $51.8 million. This segment experienced a remarkable 62.1% growth year-over-year, underscoring the company's successful focus on recurring revenue models. When combined with product licenses, the total revenue from product licenses and subscription services was $59.6 million, representing a 26.3% increase over the prior year.
Conversely, the product support segment saw a decline, recording revenues of $48.5 million, a reduction of 16.9% year-over-year. Other ancillary services also dipped slightly, contributing $14.9 million, down 1.8% from the previous year. These movements reflect shifting demand dynamics within Strategy's service and support offerings.
A significant development during the quarter was the substantial increase in the company's liquidity position. Strategy ended the period with $2.3 billion in cash and cash equivalents, a striking rise from $38.1 million reported at the close of 2025. This enhanced cash base bolsters the company’s financial flexibility amid a volatile crypto asset market.
Central to Strategy Inc’s operations is its Bitcoin treasury holdings. The company reported a 22.8% Bitcoin yield for the full year 2025, highlighting a robust performance in its cryptocurrency investments. Strategy disclosed a gain of 101,873 Bitcoin for the year, contributing significantly to its earnings.
As of February 1, 2026, Strategy held a total of 713,502 Bitcoins, amassed at an average purchase price of $76,052 each. This substantial reserve forms the bedrock of Strategy's digital asset strategy. Executive Chairman Michael Saylor remarked that the firm has constructed what he termed a “digital fortress” anchored by this bitcoin holding, emphasizing a strategic pivot toward Digital Credit that aligns with the company's indefinite commitment to Bitcoin.
Despite the company reporting robust earnings and growth in key areas, the market response was muted post-earnings release. Shares of MSTR had already reached fresh 52-week lows prior to the earnings announcement, pressured by the broad selloff affecting Bitcoin’s market value. In after-hours trading on Thursday, the stock hovered around $107.42, essentially flat, reflecting continued investor caution amid cryptocurrency volatility.
The evolving market conditions and Bitcoin’s consistent depreciation present risks to Strategy’s valuation despite strong operational results. The persistence of these headwinds suggests cautious investor sentiment relating to the company’s exposure to digital assets.
Strategy’s management is scheduled to elaborate further on the quarterly results during an earnings call with investors and analysts at 5 p.m. ET, which will provide additional context on their financial strategy and outlook.