Last week, Strategy, led by executive chairman Michael Saylor, made headlines by acquiring nearly 17,994 Bitcoins—its largest purchase since January. The transaction was valued at $1.28 billion, with an average price of $70,946 per Bitcoin. Notably, this was below the company’s cumulative average purchase price to date of $75,985 per coin. Following this latest move, Strategy’s Bitcoin holdings rose to 738,731, with a total acquisition cost now reaching $56 billion.
Shift in Accumulation Approach Marks Strategic Pivot
With this significant acquisition, Strategy logged its largest single Bitcoin purchase since the start of the year, surpassing its previous January buy of 22,305 Bitcoins for $2.13 billion. The recent move signals a critical shift: for the first time, the firm is buying large volumes below its average cost basis. During the 2022–2023 price downturns, the company remained far more cautious, making only modest additions to its holdings.
Since February, Strategy increased its portfolio with 25,229 Bitcoins bought below its average purchasing price, bringing the cost basis down from $76,052 to $75,985. This measured approach suggests a focus on spreading its positions over the long term, aiming to help stabilize overall costs.
Bitcoin and Company Shares Face Intense Pressure
After peaking at around $126,000 in October 2025, Bitcoin endured a steep decline of up to 47% by early 2026, with values recently fluctuating between $63,000 and $72,000. The impact was felt in Strategy’s stock price as well; shares traded at $543 in November 2024 but plummeted by more than 70% to about $125 by the end of February.
In the last quarter of 2025, new accounting standards required Strategy to report Bitcoin holdings at fair market value, resulting in a staggering $12.4 billion net loss. The volatility of Bitcoin prices continues to play a central role in the company’s financial reporting, influencing market perceptions and quarterly results.
Market Value Lags Behind Bitcoin Reserves
For some time, economist Peter Schiff has openly questioned the sustainability of Strategy’s Bitcoin-centric business model, highlighting the continuing decline in the firm’s share price and concerns over its funding strategy. Meanwhile, analyst Ted Pillows pointed out that Strategy’s market capitalization currently sits 20–25% below the total value of its Bitcoin reserves—a dramatic reversal from previous years, when investors were willing to pay more than double the company’s net assets in share price premiums.
The firm’s core model relies on rising Bitcoin prices to boost its market capitalization, enabling it to attract new capital at higher valuations. However, this strategy has proven risky in times of strong price swings, directly affecting the company’s access to funding and future prospects.
In 2025 alone, Strategy raised over $21 billion via stock and bond sales. Under its so-called ‘42/42 Plan’, the company is targeting $84 billion in capital by 2027. The resulting cash reserves are designed to cover up to 21 months of dividend and interest payments, establishing a buffer that means Bitcoin sales will not be needed even if market conditions worsen.
Although Michael Saylor has handed the CEO role to Phong Le, he remains the public face of Strategy. Saylor has stood by his vision—first articulated in 2020, when Strategy made its inaugural Bitcoin buy—that Bitcoin will gain value against global currencies in the long run. Despite the company’s latest purchases occurring below its average cost, Saylor maintains his commitment to the accumulation strategy.
