Strategy Inc. is navigating a financial paradox. The company, which holds more Bitcoin than any other publicly traded entity, reported a staggering $14.46 billion unrealized loss on its digital assets for the first quarter of 2026. This paper loss, driven by a 20% decline in Bitcoin’s price that pushed its value below the average purchase price of $75,694 per coin, has not slowed its aggressive accumulation strategy. In a bold move, the firm is shifting its financing approach to fuel further purchases while its own executives quietly reduce their equity stakes.
The company’s relentless buying continued into April, with an acquisition of 4,871 Bitcoin for approximately $330 million in just the first week. This brought its total hoard to 766,970 BTC, a position that now represents over 90% of its total assets. To finance this ongoing spree without excessively diluting common shareholders, Strategy is increasingly turning to “Stretch” preferred stock. For April 2026, it declared a monthly cash dividend of about $0.96 per share for this special series, aiming to attract capital with a variable dividend yield of 11.25%. The company still has roughly $37 billion in capacity across its various financing programs.
This financial engineering occurs against a backdrop of significant stock price pressure. Shares closed at €109.30 on Friday, marking an 18.55% decline since the start of the year. The stock now trades more than 70% below its 52-week high of €391.80 from last summer. Analyst sentiment reflects this caution. TD Cowen recently slashed its price target on Strategy from $440 to $350, citing a lower assumed Bitcoin price path and a reduced valuation multiple on projected Bitcoin gains. Analysts Lance Vitanza and Jonathan Navarrete maintained their Buy rating but now base their model on Bitcoin reaching $140,000 by December 2026, with Strategy purchasing about $5 billion in BTC quarterly.
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Insider activity adds another layer of skepticism. Director Jarrod M. Patten sold 2,100 Class A shares in early April at prices between $123 and $131. This is part of a broader 18-month trend where insiders have been net sellers of 542,268 shares, with purchases of only 5,000 shares dwarfed by sales of 547,268.
Despite the massive paper loss and insider sales, Strategy’s commitment appears unshaken. The company’s remaining at-the-market (ATM) offering capacity across all share classes totals over $57 billion. According to models from BitcoinTreasuries.net, if Strategy deploys around $2.3 billion monthly with Bitcoin near $75,000, it could cross the threshold of holding one million BTC by November 2026. The stock currently trades at a multiple of 1.10 times its net asset value (mNAV), meaning the market still assigns a premium to the value of its Bitcoin holdings. Whether this premium holds depends on sustained demand for its various equity offerings amid volatility and, ultimately, on the future trajectory of the Bitcoin price that underpins the entire investment thesis.
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