Strategy Q4 Earnings: Saylor Plans Bitcoin Security Program to Combat Quantum Risks

Key Highlights

Strategy announced plans to launch a Bitcoin security program focused on quantum computing risks.
Michael Saylor said the initiative will coordinate with global cybersecurity and Bitcoin experts.
The company stressed a cautious, consensus-driven approach with no immediate protocol changes.

Strategy Inc., formerly MicroStrategy, is preparing to launch a Bitcoin security program focused on long-term threats from quantum computing, Executive Chairman Michael Saylor said during the company’s fourth-quarter (Q4) earnings call on Thursday.

The move comes at a time of heightened stress for both Bitcoin and Strategy itself. A sharp market-wide sell-off has pushed Bitcoin below $65,000 and driven Strategy’s vast Bitcoin holdings under their cumulative purchase price for the first time since 2023, intensifying scrutiny of the firm’s Bitcoin-heavy strategy.

What Strategy is planning

Saylor said the proposed Bitcoin security program will focus on coordination and research rather than immediate technical changes to the Bitcoin network. According to him, Strategy intends to work with external experts and industry groups to prepare for emerging security risks that could materialise years down the line.

The initiative will collaborate with “the global cybersecurity community, the global crypto security community, and the global Bitcoin security committee” to study potential threats and align on responses.

We think it’s reasonable and appropriate for us to do this, given our large responsibility as a Bitcoin holder. But we want to do it in a very responsible fashion. And we want to make sure that we coordinate with the global cyber crypto and Bitcoin security community, because there are a lot of very, very brilliant minds here,
There’s a lot of good work being done. And it’s likely that consensus will form and solutions will form at the right time in a responsible fashion.
Michael Saylor

Strategy currently holds more than 713,000 Bitcoin (BTC), making it the largest corporate holder of the cryptocurrency. That scale, Saylor suggested, brings an obligation to think about Bitcoin’s long-term resilience.

Why quantum computing is a concern

The discussion centres on Bitcoin’s use of the Elliptic Curve Digital Signature Algorithm (ECDSA), which secures private keys and authorises transactions. In theory, sufficiently advanced quantum computers could use Shor’s Algorithm to break this encryption.

Research estimates suggest that roughly 25% of Bitcoin’s circulating supply could be vulnerable in such a scenario. These at-risk coins are primarily linked to early Pay-to-Public-Key (P2PK) addresses and reused wallets where public keys are already visible on the blockchain.

Despite the theoretical risk, Saylor dismissed the idea that Bitcoin faces an imminent threat from quantum computing.

We think it’s probably 10 or more years away before there’s a threat. That is the consensus. It’s a promising technology, but it’s still nascent,
Michael Saylor

He added that quantum-resistant cryptography is already being explored across multiple industries, including finance, technology, and national security.

No rush to change Bitcoin

Saylor repeatedly stressed that any changes to Bitcoin’s cryptographic foundations must be consensus-driven and carefully timed. Acting too early, he argued, could introduce new vulnerabilities or fragment the network.

“If Bitcoin requires an upgrade, there will be global consensus. Right now, there isn’t global consensus that existing cryptographic libraries are at risk,” he said.

“You have to be very thoughtful about addressing these risks. And you have to address them at the right time, not too soon, not too late. Because too soon, you probably don’t have the right technology, and you’re over-insuring too late. You accept risks that you shouldn’t.”

He emphasised that Bitcoin’s ability to evolve remains one of its strengths.

“Bitcoin will be stronger if and when that quantum upgrade takes place. And so Bitcoin is upgradeable. And Bitcoin can be upgraded to be stronger,” he said.

Market stress adds urgency

The announcement comes amid a steep downturn across digital assets. Bitcoin fell more than 7% in 24 hours, trading near $65,000, while the broader crypto market lost close to $470 billion in value.

Data shows over $1.3 billion in leveraged long positions were liquidated during the sell-off, accelerating losses through forced selling. Bitcoin’s decline closely tracked moves in U.S. equity markets, highlighting its growing correlation with macro-driven risk sentiment.

The price drop has placed Strategy under renewed pressure.

Strategy’s losses come into focus

In its fourth-quarter (Q4) earnings release, Strategy reported a net loss of $12.4 billion, driven largely by mark-to-market declines in its Bitcoin holdings.

As previously reported by The Crypto Times, Bitcoin’s recent slide has pushed Strategy’s holdings below their average cost basis of $76,052. This marks the first time since 2023 that the company’s Bitcoin position has moved underwater, erasing gains from the post-election rally.

Despite holding approximately $2.25 billion in cash, Strategy did not announce any new equity issuance or debt financing during the earnings call. This is a notable shift from the capital-raising playbook that has defined the company since it adopted Bitcoin as its primary treasury asset in 2020.

A changing tone from Saylor

For much of the past four years, Strategy operated as a high-beta proxy for Bitcoin exposure. Its shares surged more than 3,500% between 2020 and 2024 as investors used the stock to gain leveraged exposure to Bitcoin.

That model is now under strain. The rise of spot Bitcoin exchange-traded funds (ETFs) has provided investors with cheaper and cleaner exposure, reducing Strategy’s appeal as a proxy.

Criticism has resurfaced as prices fall. Investor Michael Burry warned this week that further declines could trigger a “death spiral” among corporate Bitcoin holders. Long-time skeptics such as Jim Chanos have reiterated concerns about leverage and reliance on non-earning assets.

Saylor has responded by reframing expectations. He recently said Strategy may not be profitable for up to a decade, effectively repositioning the company as a long-horizon Bitcoin holding vehicle rather than a traditional software business.

Why the security program matters

Against this backdrop, the Bitcoin security program serves as a signal that Strategy is shifting its focus from aggressive accumulation to long-term stewardship.

Supporters view the initiative as a responsible step by Bitcoin’s largest corporate holder. Critics argue that coordination must eventually be backed by concrete technical investment and funding.

For now, Strategy’s message is clear. Quantum computing is a risk worth preparing for, but not one that warrants panic or rushed changes.

As Bitcoin tests key support levels and Strategy navigates one of its most challenging periods since adopting Bitcoin, the debate is expanding beyond price. The question now is how institutions prepare for risks that may still be a decade away, while surviving volatility in the present.

Also Read: Trump-Backed WLFI Sells $5M in Wrapped Bitcoin Amid Rising US Scrutiny

Disclaimer: The information researched and reported by The Crypto Times is for informational purposes only and is not a substitute for professional financial advice. Investing in crypto assets involves significant risk due to market volatility. Always Do Your Own Research (DYOR) and consult with a qualified Financial Advisor before making any investment decisions.