Strategy Resumes Bitcoin Accumulation, Adds 1,229 BTC for $109 Million

2025-12-30 06:09:38

Strategy (MSTR), the world’s largest corporate Bitcoin holder, has returned to buying after a brief pause, acquiring 1,229 BTC last week for approximately $108.8 million.

Average purchase price: $88,568 per BTC
Total holdings now: 672,497 BTC (acquired for $50.44 billion overall, average cost $74,997/BTC)
Funding: $108.8 million from Class A common stock sale
MSTR shares: down ~1% premarket to ~$157; Bitcoin trading near $87,000

(Sources: X)

The purchase, disclosed in a Monday filing, follows Strategy’s recent buildup of $2.2 billion in cash reserves. The move signals renewed confidence in Bitcoin accumulation despite short-term price weakness.

Strategy’s aggressive treasury strategy—pioneered under Michael Saylor—continues to position the company as a proxy for institutional Bitcoin exposure. The latest addition reinforces its dominance, holding far more BTC than any other public entity.

Market reaction was muted, with MSTR shares edging lower in premarket trading as Bitcoin hovered around $87,000—reflecting ongoing year-end caution in crypto markets.

The acquisition underscores Strategy’s long-term conviction: despite Bitcoin’s ~4% YTD decline and recent volatility, the firm views current levels as attractive for continued stacking.

As 2025 closes, Strategy’s holdings represent one of the boldest corporate bets on Bitcoin’s future as a reserve asset.

MicroStrategy’s Bitcoin Treasury Strategy: An In-Depth Analysis

MicroStrategy, rebranded as Strategy Inc. in 2025, has become synonymous with corporate Bitcoin adoption through its aggressive treasury strategy. Pioneered by co-founder Michael Saylor, this approach treats Bitcoin as a primary reserve asset, transforming the software firm into a de facto Bitcoin investment vehicle. This analysis examines the strategy’s evolution, mechanics, benefits, risks, and future implications.

The Origins and Evolution of the Strategy

Strategy began accumulating Bitcoin in August 2020 as an inflation hedge and alternative to cash reserves. What started as a $250 million pilot has scaled dramatically: by December 28, 2025, holdings reached 672,497 BTC—acquired for $50.44 billion at an average cost of $74,997 per coin.

The firm has executed purchases in 41 weeks of 2025 alone, up from 18 in 2024. Recent additions include 1,229 BTC for $108.8 million (average $88,568/BTC) between December 22–28, funded by stock sales—bringing year-to-date acquisitions to record levels.

This evolution reflects a shift from defensive treasury management to proactive growth: Strategy now targets $84 billion in capital raises through 2027 for further BTC accumulation, including perpetual preferred stock programs.

How the Bitcoin Treasury Strategy Works

At its core, the strategy involves converting cash flows and raised capital into Bitcoin holdings:

Funding Sources: Debt issuance, equity sales, and convertible notes—leveraging low-interest environments to buy BTC.
Holding Approach: “HODL” philosophy—no selling, with BTC treated as a long-term store of value.
Risk Management: Partial hedging through options, though primary focus remains accumulation.
Corporate Integration: BTC now central to balance sheet, with AI-powered analytics (core business) positioned alongside treasury operations.

This model creates a leveraged Bitcoin play: shareholders gain amplified exposure through MSTR stock, which trades at a premium to its BTC NAV (net asset value).

Benefits and Success Metrics

The strategy has delivered mixed but notable results:

Shareholder Returns: MSTR stock up dramatically long-term, though volatile—down ~44% YTD in 2025 amid broader crypto weakness.
BTC per Share Growth: Despite dilution, Bitcoin holdings per share continue increasing, providing unique leverage.
Market Influence: Strategy’s moves often impact BTC price; 2025 purchases totaled billions, supporting market floors during dips.
Diversification: Recent $2.2B cash reserve buildup shows balanced liquidity management.

Analysts praise the approach as visionary, turning a software company into a crypto treasury pioneer with ~6.5% of global BTC supply.

Risks and Criticisms

Despite successes, the strategy carries substantial risks:

Volatility Exposure: BTC’s swings amplify MSTR’s beta—2025 saw 30%+ drawdowns.
Dilution Concerns: Frequent stock sales (e.g., $108.8M for latest buy) dilute shareholders, though BTC/share metrics help mitigate.
Regulatory/Debt Pressure: Rising interest rates could strain financing; Trump’s crypto conflicts add scrutiny.
Opportunity Cost: Critics argue tying treasury to one asset limits diversification.

Some view it as speculative rather than sustainable, especially with MSTR trading at premiums to NAV.

Future Outlook and 2026 Projections

Strategy plans continued expansion: targeting 1M+ BTC long-term through $84B raises. With BTC at ~$87,000, unrealized gains exceed $9B.

If crypto rebounds (analysts target $150K–$250K BTC in 2026), MSTR could see explosive returns. However, macro risks (recession, tighter policy) could pressure leveraged positions.

The strategy’s success will hinge on execution, market conditions, and maintaining investor confidence amid volatility.

Strategy Bitcoin Treasury FAQ

1. What is Strategy’s current BTC holdings? As of December 28, 2025, 672,497 BTC—acquired for $50.44 billion at ~$74,997 average cost.

2. How does Strategy fund purchases? Primarily through equity sales, convertible notes, and debt—leveraging to convert cash into BTC.

3. Has the strategy been successful? Yes for long-term holders, with massive BTC appreciation, but volatile—down ~44% YTD in 2025.

4. What are the main risks? BTC volatility, share dilution, rising debt costs, and regulatory changes.

5. What’s next for Strategy? Continued accumulation toward 1M+ BTC, with $84B capital raise target through 2027.<|control12|>### MicroStrategy’s Bitcoin Treasury Strategy: An In-Depth Analysis

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