Strategy Doubles Down on Bitcoin Amid Stock Decline

In a bold move that underscores its unwavering commitment to cryptocurrency, Strategy Inc. has executed another massive Bitcoin purchase. Regulatory filings reveal the company acquired an additional 3,015 BTC between February 23 and March 1, 2026, spending over $200 million. This expansion of its digital asset treasury was funded primarily through the sale of common stock, even as the company’s share price has plummeted by more than 60% since the autumn of 2024.

Funding the Digital Gold Rush

A March 2nd filing with the U.S. Securities and Exchange Commission (SEC) detailed the transaction. Strategy allocated $204.1 million for this latest Bitcoin tranche, paying an average price of approximately $67,700 per coin. This purchase boosts the firm’s total holdings to 720,737 BTC, representing over 3.4% of Bitcoin’s finite 21 million supply cap. This cements Strategy’s position as the single largest corporate holder of Bitcoin globally.

The company financed nearly the entire purchase—97%—by selling 1.73 million Class A common shares, which generated net proceeds of $229.9 million. To cover the remainder, Strategy sold 71,590 shares of its variable-rate Series STRC preferred stock, raising an additional $7.1 million.

Preferred Share Appeal and Operational Performance

In a related development aimed at income-focused investors, Strategy’s board of directors announced another dividend increase. The annual payout on the Series STRC preferred shares was raised from 11.25% to 11.5%, marking the seventh consecutive hike since July 2025. The upcoming quarterly dividends, ranging from $2.00 to $2.50 per share, are scheduled for payment on March 31.

While its Bitcoin strategy captures headlines, Strategy’s core software business continues to perform steadily. The company reported fourth-quarter 2025 revenue of $123 million, a figure that slightly exceeded market expectations.

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Accounting Volatility and a Long-Term Blueprint

The aggressive accumulation of Bitcoin occurs against a backdrop of significant price volatility. After reaching nearly $126,000 in October 2025, Bitcoin’s value has fallen roughly 47% to around $66,000. Under the new FASB accounting rules, which require digital assets to be carried at fair market value, these price swings directly impact the income statement. This was starkly evident in Q4 2025, when Strategy posted a net loss of $12.4 billion—a loss almost entirely attributed to unrealized, non-cash accounting impairments rather than operational cash outflow.

The company’s financing strategy remains under scrutiny. Strategy is executing what it terms a “42/42 Strategy,” an evolution of its earlier “21/21 Plan,” with the goal of raising $42 billion equally from equity and debt issuance. In 2025 alone, it secured $25.3 billion, outpacing all other U.S. issuers.

CEO Michael Saylor has outlined plans to convert approximately $6 billion in convertible notes into equity over the next three to six years. The company’s balance sheet currently lists about $8.2 billion in convertible debt alongside several series of preferred stock. Management’s stated objective is to double the Bitcoin-per-share ratio within seven years and achieve an annualized Bitcoin return between 5% and 14%.

The sustainability of this aggressive path is a key question for investors, given the dual pressures of ongoing Bitcoin price volatility and the dilution of common shares through equity sales. Nevertheless, institutional interest persists; firms like Jane Street have recently increased their positions, and index provider MSCI continues to include Strategy in its indices despite certain constraints.