Strategy stock (MSTR) plummeted 17% on Thursday after releasing its fourth quarter earnings, followed by another 1% drop after-hours. The company, led by Michael Saylor, is known for hoarding bitcoin in corporate treasuries, with 713,502 bitcoins purchased at an average price of $76,052. However, the recent sell-off in bitcoin caused unrealized losses of about $8.9 billion.

The long-term holding strategy of bitcoin as an investment proxy for Strategy raises concerns about its ability to raise capital. Saylor’s tweet of “HODL” reflects the company’s commitment to holding on to its bitcoin reserves despite market fluctuations. The company reported an operating loss of $17.4 billion in Q4, a significant decline from the previous year.

Despite the losses, Strategy’s software operations saw a 1.9% increase in revenue to $123 million, driven by growth in product licenses and subscription services. The company also created a $2.25 billion US dollar reserve to cover dividends for over two years, strengthening its capital structure. CFO Andrew Kang emphasized the company’s resilience in the face of market challenges.

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