Strategy Inc. bought 10,645 BTC last week for $980.3 million—$92,098 per coin.
Second straight week dropping nearly $1 billion on Bitcoin. Total holdings: 671,268 BTC, acquired for $50.33 billion at an average of $74,972 per coin.
At current prices near $89,000, that’s a $60 billion position—and a $10 billion unrealized gain.
The Funding Machine Keeps Running
The company raised $989 million last week through equity sales: $882-888 million from MSTR common stock and $82 million from STRD preferred shares.
Between October and December 2024, Strategy pulled in $15.1 billion—the largest corporate capital raise in history dedicated to cryptocurrency.
They now control 2% of all Bitcoin that will ever exist. No other corporation comes remotely close to this level of commitment.
The Cash Reserve Decision
Strategy announced a $1.44 billion cash reserve to cover twelve months of preferred stock dividends.
Solves one problem. Creates another.
But parking cash in reserves instead of buying Bitcoin creates a negative BTC Yield. The company is diluting shareholders without increasing Bitcoin per share—a metric investors watch closely.
For context: Strategy achieved a 74.3% BTC Yield in 2024 and 48.0% in Q4 alone.
Both figures crush the original 6-10% annual target. The recent negative yield represents a strategic trade: slower accumulation for balance sheet stability.
The Stock Price Tells a Different Story
MSTR shares have plunged over 40% year-to-date despite Bitcoin’s relative stability.
The company keeps buying Bitcoin aggressively. The stock keeps falling. The market’s message is clear: skepticism.
MSCI is proposing to exclude digital asset treasury companies from its indices. If that happens, JPMorgan estimates Strategy could face $2.8 billion in selling pressure as index funds dump the stock.
Strategy calls the 50% threshold “discriminatory, arbitrary, and unworkable.”
What the Banks Are Doing
Major U.S. banks—Bank of America, Wells Fargo, JP Morgan, and Citi—now offer Bitcoin custody solutions and credit facilities.
Michael Saylor put it bluntly: “All the large banks went from not banking Bitcoin to issuing credit against it in twelve months.”
This shift enabled Strategy to launch structured products: STRK, a preferred stock paying an 8% dividend, and STRF, a perpetual bond yielding 10%—both backed by Bitcoin.
The company uses over-collateralization to transform volatile Bitcoin holdings into instruments with steadier yields and lower risk profiles. It’s financial engineering that turns digital gold into digital credit.
The Long Game
Saylor predicts Bitcoin will hit $13 million by 2045. He claims its market cap will overtake gold by 2035—the year when 99% of Bitcoin’s total supply will have been mined.
Strategy continues buying despite mounting pressure: a falling stock price, index exclusion threats, and analyst downgrades.
The company has built a treasury representing 2.1% of all Bitcoin that will ever exist. The execution remains consistent. The conviction appears unshakeable.
The Risk No One’s Talking About
Here’s what the bulls miss: Strategy’s model only works if Bitcoin goes up—or at least doesn’t crash.
The company carries billions in convertible debt. Preferred stock dividends compound if missed. If Bitcoin drops 50% and stays there, the cash reserve runs dry, the BTC Yield goes deeply negative, and the capital machine stops.
At that point, Strategy would face a choice: sell Bitcoin to cover obligations or default on dividends. Either option breaks the “never sell” promise that attracted investors in the first place.
The bigger they build this structure, the more fragile it becomes.
Visionary or reckless? Bitcoin’s next move will decide.
