Strategy’s 100th Bitcoin Purchase Amid $6.8B Unrealized Loss

Strategy’s latest acquisition of 591 Bitcoin, funded with proceeds from issuing common shares, is a symbolic milestone—its 100th purchase since the company began its crypto accumulation strategy in 2020. This $40 million buy lifted its total holdings to 717,722 Bitcoin, a stockpile worth approximately $47 billion at recent prices around $65,500. However, the celebratory tone is muted by stark financial realities. The company has spent over $54 billion to amass its Bitcoin, and with the cryptocurrency’s price well below its average purchase cost, Strategy now faces a massive $6.8 billion unrealized loss on paper. The latest purchase did slightly lower its average buy-in price to $76,020, but it remains a figure significantly above current market levels.

The financial strain is reflected in the company’s market performance. Strategy’s stock price fell 2.5% to $127 on Monday, the day it disclosed this modest purchase. While above a recent low of around $123, the share price has plummeted 64% over the past six months. This decline has eroded the company’s enterprise value relative to its stock price, complicating its ability to increase the amount of Bitcoin it owns per share—a key metric for investors in such accumulation-focused firms. The broader metric known as mNAV (multiple-to-net asset value) has declined across similar companies, intensifying the spotlight on Strategy’s financial strategy and performance.

Central to Strategy’s aggressive buying spree is its variable rate preferred stock, known as STRC. This financial instrument, core to Executive Chairman Michael Saylor’s vision for stockpiling Bitcoin during a potential prolonged crypto market weakness, currently offers an 11.25% monthly dividend to investors. While it has provided capital to accelerate Bitcoin purchases in prior weeks, it has saddled the company with substantial and recurring monthly costs. These obligations have forced Strategy to shore up cash to effectively pre-pay dividends, adding a layer of financial pressure atop its paper losses on Bitcoin.

Strategy is not alone in utilizing such instruments. The Las Vegas conference it is hosting this week, “Strategy World,” is expected to feature executives from firms like Strive and Metaplanet, which have adopted similar variable rate preferred share products to fund their own Bitcoin acquisitions in recent months. The event, kicking off with a Saylor keynote on the company’s shift toward “digital credit,” underscores a growing corporate trend of using specialized financing to bet on crypto. However, Strategy’s use of STRC has been particularly pronounced, helping it further its lead as the dominant corporate buyer.

Despite its financial challenges, Strategy’s position as the preeminent corporate Bitcoin accumulator is undeniable. In January alone, the company accounted for 93% of all Bitcoin added by publicly traded companies, stacking 40,150 Bitcoin compared to just 3,080 Bitcoin amassed by all its competitors combined. This overwhelming market share highlights how Strategy’s strategy, fueled by tools like STRC, has set it apart in the corporate treasury movement.

Yet, this dominance exists alongside persistent market skepticism about the sustainability of its approach. Traders on the Myriad prediction market currently assign only a 17% chance that Strategy will sell Bitcoin this year. While this marks a decrease from 33% earlier this month—following the disclosure of a massive $12.4 billion fourth-quarter loss—it still reflects underlying doubts. The company’s journey from its first “Strategy World” conference last May to this week’s event has been tumultuous, with its Bitcoin holdings swinging to a massive paper loss. As Strategy convenes peers in Las Vegas to network on “the future of enterprise success,” the future of its own high-stakes Bitcoin strategy remains a critical question for investors and the crypto market at large.