COMPANY GROWS BITCOIN STASH DESPITE ONGOING STOCK DECLINES

Strategy took a bold step last week, making its largest Bitcoin acquisition in months by purchasing 10,624 BTC for approximately $962.7 million. This brings the company’s total Bitcoin holdings to 660,624 BTC, valued at around $49.35 billion at current prices. The firm has seen a 24.7% yield on its Bitcoin investments so far this year, reflecting the ongoing strength of its crypto-focused strategy.

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The purchase comes at a challenging time for Strategy’s stock, which has tumbled nearly 60% over the past six months, dropping from the $400s to the $170s. Short-term recovery has been limited, as the stock faces multiple resistance levels between $195 and $215. Investors remain cautious, concerned about the company’s prospects and the wider market conditions.

Despite the stock downturn, founder Michael Saylor remains fully committed to the company’s “Bitcoin maximalist” approach. He has consistently rejected the notion of selling Bitcoin to fund dividends. Instead, Strategy has built a $1.44 billion cash reserve, enough to cover dividends for nearly two years. Additionally, the company has launched perpetual preferred shares, which Saylor expects will become a key growth driver over the next 12–24 months.

The firm’s aggressive Bitcoin strategy, however, faces mounting competition. Major financial institutions, including JPMorgan and Morgan Stanley, are introducing Bitcoin-linked products that provide controlled institutional exposure with capped upside. These products challenge Strategy’s position as the go-to corporate vehicle for Bitcoin exposure. Strategy has also drawn attention from prominent short-sellers, including Jim Chanos, while other companies such as Metaplanet are following similar strategies with Bitcoin-heavy treasuries.

As traditional banks and investment firms expand their crypto offerings, Strategy’s role as a leading corporate Bitcoin holder is under increased scrutiny. The firm’s strategy demonstrates both the potential rewards of large-scale Bitcoin accumulation and the risks of holding substantial crypto assets in a highly competitive and rapidly evolving market. Analysts and investors alike are closely watching whether Strategy’s approach will continue to pay off amid market volatility, growing institutional competition, and changing regulatory dynamics.

FAQs

Q1: What recent Bitcoin purchase did Strategy make?

A1: Last week, Strategy made its largest Bitcoin purchase in months, acquiring 10,624 BTC for approximately $962.7 million. This move increased the company’s total Bitcoin holdings significantly, reflecting its ongoing commitment to its Bitcoin-focused strategy even amid market volatility.

Q2: How much Bitcoin does Strategy hold now, and what is it worth?

A2: Following the purchase, Strategy now holds 660,624 BTC, valued at around $49.35 billion at current market prices. The firm has achieved a year-to-date return of 24.7% on its Bitcoin investments, highlighting the profitability of its long-term accumulation strategy.

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Q3: How has Strategy’s stock performed recently?

A3: Strategy’s stock has struggled, falling nearly 60% over the past six months—from the $400s to roughly $170—without any significant short-term rebound. The stock faces resistance levels between $195 and $215, which limits potential rallies and reflects investor caution regarding the company’s near-term prospects.

Q4: Is Strategy selling Bitcoin to fund dividends?

A4: No. Founder Michael Saylor remains committed to the firm’s “Bitcoin maximalist” strategy, rejecting the idea of selling Bitcoin to cover dividends. Instead, Strategy has built a $1.44 billion cash reserve, enough to fund dividends for nearly two years, ensuring stability while maintaining its long-term crypto position.

Q5: What challenges and competition is Strategy facing?

A5: Strategy faces increasing competition as major banks like JPMorgan and Morgan Stanley launch Bitcoin-linked products, providing controlled institutional exposure to crypto with capped upside. The firm is also under scrutiny from short-sellers, including Jim Chanos, and other companies like Metaplanet are adopting similar Bitcoin-heavy treasury strategies, challenging Strategy’s dominance as a corporate Bitcoin holder.