Strategy faces $17.4B operating loss

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Market Snapshot: Overnight Moves

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Daily Updates:

• The selloff in cryptocurrencies intensified further yesterday, with BTC falling 18% intraday to below $60,000 — its largest single-day drop since the collapse of FTX in November 2022. Not only is BTC now trading 50% below its $126K all-time high, it is now also below the all-time high of the previous 2020/21 crypto cycle. 
• The wider market of altcoins have been hit even harder — ETH fell below $1,800 and is currently down 11% over the past 24 hours, SOL has fallen 13% to $80, while XRP is down close to 10% — all three tokens falling through major support levels. 

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• Nowhere is the panic as obvious as in derivatives markets however. According to Coinglass, $2.6B of positions have been liquidated over the past 24 hours across nearly 600,000 traders. 
• Funding rates have plunged negative, particularly for BTC with 8-hourly rates falling to levels last seen in December 2024 (-0.02%) — an indication of outsized demand for short positions. 

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• Extreme demand for options protection pushed 7-day at-the-money implied volatility up towards 103%, matching levels of volatility seen during November 2022, with both BTC and ETH’s term structures of volatility significantly inverted.

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• Just since the start of the month, short-dated BTC implied volatility has more than doubled. 
• Equally, the demand for put options has also reached November 2022 levels — excluding one erroneous spike in April 2024, the last time BTC put-call skew fell as negative as -30% was November 16, 2022.

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• Adding to the negative sentiment is the lack of support from Spot exchange traded funds. BTC Spot ETFs saw another day of outflows amounting to $434.1M, bringing the 20-day rolling sum to -$2.7B. Equally, Spot Ethereum ETFs saw outflows of $80.8M. 

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• Heavy selling was also apparent in the US stock market, which continued to fall lower in yesterday’s session after concerns over AI valuations dragged equities down earlier in the week. The S&P 500 fell 1.23%, the Nasdaq-100 had its worst three-day performance since April 2025 falling 1.38% yesterday, while the Dow Jones fell 1.2%. 

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• Confidence in US equities was also dented by the BLS’s JOLTS report which suggested continued weakness in the US labour market.
• US job openings fell in December by 386,000 to their lowest level since September 2020. Available positions fell from a downwardly revised 6.93M in November to 6.54M in December, below all estimates in Bloomberg’s survey of economists.

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• A separate report from outplacement firm Challenger, Gray & Christmas Inc. showed that US companies announced 108,435 job cuts in January 2026, a 118% increase from a year earlier and the largest number of job cuts for any January since 2009. According to the report, hiring intentions also fell to a 2009-low. 
• US treasury yields slid across the curve following the weaker-than-expected jobs data. The yield on the 10-year treasury fell 9bps to 4.18%, while the 2-year yield fell 12bps to 3.43%.

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• Bitcoin treasury firm Strategy posted a $17.4B operating loss in the Q4 2025 earnings report, driven by unrealised losses on its bitcoin holdings. 
• Speaking on the company’s Q4 earnings call, CEO Phong Le addressed the impact of bitcoin’s recent downturn, saying, “In the extreme downside, if we were to have a 90% decline in bitcoin price, and the price was $8,000, that is the point at which our bitcoin reserve equals our net debt, and we will not be able to then pay off our convertibles using our Bitcoin reserve, and we'd either look at restructuring, issuing additional equity, issuing additional debt.” 
• The company currently holds 713,502 BTC, with an average purchase price of $76,052 per bitcoin with a current market value of around $54.263M.

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• On-chain data shows bitcoin miner MARA Holdings moved nearly 1,317 BTC (around $87.4M) to several wallets and exchange-linked addresses over the past 13 hours. The largest transfer, 653.773 BTC (about $43.4M),  was sent to a wallet linked to digital asset manager Two Prime, followed shortly by another 8.999 BTC (roughly $597,000) to the same address. 
• Previously, on 15 July 2025, MARA led a $20M investment in Two Prime and expanded its allocation into Two Prime’s institutional bitcoin yield strategies from 500 BTC to 2,000 BTC.
• Other outbound moves included 200 BTC and 99.99 BTC to BitGo-associated addresses, plus a further 355 BTC sent across separate, unidentified wallets.

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• Bitwise has filed a form S-1 with the US SEC for the registration of a Bitwise Uniswap ETF, noting the fund won’t include staking at launch, though that could be revised later.

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• Solana memecoin launchpad Pump.fun has acquired trading execution terminal Vyper, with its infrastructure expected to be migrated to Pump.fun's "Terminal". 
• The deal follows Pump.fun’s earlier move into trading tools, including its October 2025 acquisition of Padre, which it later rebranded as "Terminal", with the team saying the addition of Vyper will improve EVM trading support, including on Base.

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This Week’s Calendar:

Charts of the Day:

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