Undeterred by the current market climate, software firm Strategy Inc. continues its aggressive accumulation of cryptocurrency. In a bold move last week, the company deployed over $1 billion to purchase additional Bitcoin, even as its existing digital asset holdings are underwater. This raises a critical question: how is the corporation funding these massive purchases while sitting on significant unrealized losses?
A Core Business Providing Stability
Beyond the cryptocurrency headlines, Strategy Inc. maintains a steady operational foundation. Its traditional software business, specializing in AI-powered analytical tools for corporate clients, reported revenue of $122.99 million for the final quarter of 2025. This performance slightly exceeded market expectations. Notably, this marks the third positive surprise from its core operations in the last four reporting periods.
The Mechanics of a Billion-Dollar Purchase
The recent acquisition, valued at $1.28 billion, was not funded from regular business operations. Instead, Strategy Inc. executed a series of sophisticated capital market transactions. The company raised approximately $900 million through the sale of common stock. The remaining balance, roughly 30%, was generated by issuing preferred shares (ticker: STRC) at a discount.
Market analysts are increasingly viewing the high trading volume of these STRC preferred shares as a reliable early indicator of the company’s impending Bitcoin purchases. By adjusting the dividend rate on these instruments to 11.5%, Strategy Inc. manages to keep their price near par value, limiting volatility. This creates a dedicated funding mechanism that allows for continuous asset accumulation, largely insulated from short-term crypto price swings.
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An Expanding Position and Deepening Paper Loss
Between March 2 and March 8, 2026, the firm purchased nearly 18,000 additional Bitcoins at an average price of about $70,946 per coin. This brings its total holdings to a colossal 738,731 BTC, representing approximately 3.5% of the cryptocurrency’s maximum possible supply.
The financial context of this accumulation is striking. The company’s average cost basis across its entire Bitcoin portfolio stands at nearly $75,862 per coin. With Bitcoin currently trading around $68,000, Strategy Inc. is carrying a substantial unrealized book loss. This high-risk strategy is mirrored in its equity performance; the stock has declined more than 46% year-to-date and remains subject to extreme volatility.
With untapped authorization for equity sales running into the tens of billions, management has secured ample financial runway for further sustained purchases in coming quarters. Consequently, the future trajectory of Strategy Inc.’s share price remains almost entirely tethered to the price movement of Bitcoin and the evolving regulatory landscape for digital assets in the United States.
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