Strategy expands Bitcoin holdings despite stock struggles

Strategy has made its largest Bitcoin purchase in months, acquiring 10,624 Bitcoin for approximately $962.7 million last week.

This move, despite the company’s stock remaining in a prolonged downtrend, brings its total Bitcoin holdings to 660,624 BTC, worth about $49.35 billion. The company has reported a 24.7% yield on its Bitcoin investments year-to-date.

The purchase comes at a time when the company’s stock has plummeted nearly 60% over the past six months, from the $400s to the $170s, with no significant bounce in sight. Strategy’s stock faces multiple resistance levels between $195 and $215, preventing any short-term rallies, and investors are increasingly concerned about the company’s prospects.

Despite the downturn, founder Michael Saylor remains committed to the firm’s “Bitcoin maxi” strategy, rejecting the idea of selling Bitcoin to fund dividends. Instead, the company has built a $1.44 billion cash cushion, enough to cover dividends for nearly two years. Strategy also introduced perpetual preferred shares, which Saylor believes will be a game-changer in the next 12–24 months.

However, Strategy faces increasing competition. Major banks like JPMorgan and Morgan Stanley are launching Bitcoin-linked products, providing controlled institutional exposure to Bitcoin with capped upside, directly challenging Strategy’s position as the go-to corporate vehicle for Bitcoin exposure. Additionally, short-sellers, including Jim Chanos, have targeted Strategy, while firms like Metaplanet are adopting similar Bitcoin-heavy treasury strategies.

As traditional financial institutions expand into crypto, Strategy’s role as a dominant corporate Bitcoin holder faces growing scrutiny.