Strategy Buys $90M Bitcoin Despite $4.8B Unrealized Loss

Strategy, the world’s largest Bitcoin treasury company formerly known as MicroStrategy, executed its latest purchase last week as the cryptocurrency market reeled from a significant downturn. The firm spent approximately $90 million to acquire 1,142 Bitcoin, paying an average of $78,815 per coin. However, with Bitcoin’s price recently trading near $69,193 according to data from CoinGecko, this specific batch of coins has already depreciated in value. This acquisition was financed not through debt but by selling $89.5 million worth of the company’s own Class A Common Shares, ticker MSTR, demonstrating a direct leveraging of equity to bolster its crypto reserves.

The purchase amplifies Strategy’s already dominant position in the corporate Bitcoin landscape. The company now holds 714,644 BTC, a stash currently valued at approximately $49.6 billion. The critical issue, however, lies in the firm’s cost basis. Strategy’s average acquisition price across its entire holdings stands at $76,056 per Bitcoin. With the current market price significantly lower, the company is sitting on an unrealized loss of roughly $4.8 billion. This financial pressure was crystallized in its recent earnings, with Strategy reporting a massive $12.4 billion loss for the fourth quarter of 2025, a direct result of Bitcoin’s price decline from its all-time high above $126,000 set in October.

The context for Strategy’s aggressive buying is a crypto market under severe stress. Bitcoin’s price plunged to nearly $60,000 last week, contributing to an over 23% drop in value over the preceding 30 days. This volatility directly impacted Strategy’s stock, with MSTR shares falling to an 18-month low of $104 last week before a partial rebound. As of the report, shares were trading just above $133, still down about 1.25% on the day. The symbiotic relationship between Bitcoin’s price and Strategy’s stock valuation has never been more apparent, with the company’s fortunes inextricably linked to the digital asset’s market performance.

Despite these substantial paper losses and a declining stock price, Strategy’s leadership, spearheaded by co-founder and Executive Chairman Michael Saylor, maintains a defiantly optimistic outlook. In comments made last Thursday, Saylor framed the company’s strategy in almost ideological terms, stating, “Strategy has built a digital fortress anchored by 713,502 Bitcoin, and our shift to digital credit, which aligns with our indefinite Bitcoin horizon.” This rhetoric reinforces the firm’s long-term, hold-through-volatility approach, positioning Bitcoin not merely as an investment but as the foundational asset for its future corporate strategy.

Strategy’s monumental bet on Bitcoin now presents a critical test of corporate conviction. Holding 3.4% of the entire possible Bitcoin supply grants the company enormous influence but also exposes it to unparalleled concentration risk. The firm’s entire treasury is currently ‘underwater,’ meaning the market value is less than the total capital expended to acquire it. This scenario raises fundamental questions about capital allocation and shareholder value, especially as the company uses equity sales to fund further purchases during a downturn.

While Saylor’s public comments project unwavering confidence, market participants are weighing the possibility of a strategic pivot. Data from the prediction market platform Myriad, operated by Decrypt’s parent company Dastan, suggests a non-trivial chance of a change in course. Users on the platform see a nearly 28% probability that Strategy will sell some of its Bitcoin holdings before the end of the year. This sentiment indicates that a significant minority of observers believe the financial pressure from sustained losses or a need for liquidity could eventually force the company’s hand, challenging the ‘digital fortress’ narrative with pragmatic financial realities.