Strategy (MSTR.US) has once again increased its Bitcoin investments amid cryptocurrency price fluctuations, drawing significant market attention. According to a recent regulatory filing, the company purchased an additional 3,015 Bitcoin between February 23 and March 1, with a total value of approximately $204.1 million. The average purchase price was around $67,700 per coin. Following this acquisition, Strategy's total Bitcoin holdings have risen to 720,737 coins, with an average cost basis of $75,985 per coin.
Data indicates that Bitcoin rose about 5.5% in the past 24 hours to $68,903, after earlier declining to around $63,254 due to geopolitical tensions in the Middle East. Boosted by the news, Strategy's stock closed up 6.29% on Monday. To fund the purchase, the company raised about $237.1 million through the sale of common and preferred shares under an "at-the-market" offering program.
Strategy has long relied on equity financing to support its Bitcoin acquisition strategy. Chairman and co-founder Michael Saylor has repeatedly stated his intention to continue accumulating Bitcoin "forever" and has used social media to signal the company's steadfast bullish outlook on the asset. However, skepticism persists in the market regarding its heavy reliance on Bitcoin within its financial model.
As cryptocurrency prices have retreated, Strategy's stock has declined approximately 10% year-to-date, underperforming the S&P 500, which gained 0.4%, and the Nasdaq Composite, which fell 2.4%. While Strategy maintains a traditional software business, its revenue remains limited. The company's balance sheet is almost entirely dictated by Bitcoin price movements, leading many to view it as a highly leveraged Bitcoin investment vehicle.
Bitcoin approached a high of nearly $126,000 in October 2025 but retreated to the mid-$60,000 range by early 2026. Under new accounting standards, the company is required to revalue its digital asset holdings quarterly at market prices. Strategy reported a net loss of $12.4 billion in the fourth quarter of last year, which included approximately $17.4 billion in unrealized losses on digital assets.
Additionally, the company continues to issue preferred shares to raise funds for Bitcoin purchases. These preferred shares carry substantial fixed dividend obligations. Since cash flow from its software operations is insufficient to cover these dividends, Strategy must either issue new shares to pay them or, in extreme cases, sell portions of its Bitcoin holdings. As volatility in the crypto market intensifies, this model of using equity financing to support Bitcoin expansion is facing increased scrutiny.
Comments