Bitcoin Strategy Inc. Buys $1.25 Billion in Bitcoin, Increasing Holdings to 687,410 BTC

Strategy Inc. acquired 13,627 Bitcoin for approximately $1.25 billion, its largest purchase since July 2025.

The company used proceeds from at-the-market sales of its Class A common stock and preferred equity to fund the purchase according to Bloomberg Law.

Strategy now holds 687,410 Bitcoin with an aggregate purchase price of about $51.8 billion at an average price of $75,353 per coin as reported by BitBo.

Strategy Inc. recently executed its largest Bitcoin purchase of the year, acquiring 13,627 Bitcoin for about $1.25 billion in a single week between January 5 and January 11.

The acquisition price per Bitcoin averaged $91,519, higher than the company's historical average cost basis of $75,353.

The purchase was funded entirely through the sale of shares under the company's at-the-market (ATM) programs, which included the issuance of 6.8 million shares of its Class A common stock (MSTR) and 1.19 million shares of Variable Rate Series A Perpetual Stretch Preferred Stock (STRC) as detailed in the announcement.

This approach generated $1.1285 billion in net proceeds from common stock and $119.1 million from preferred equity according to Bitcoin Treasury data.

The company's Bitcoin treasury now totals 687,410 Bitcoin, valued at an aggregate cost of $51.8 billion.

Despite a reported $17.4 billion in unrealized losses tied to its Bitcoin holdings due to price declines, Strategy continues to expand its position using equity financing as disclosed in SEC filings.

Why This Purchase Matters for Strategy's Balance Sheet?

This recent purchase demonstrates Strategy's commitment to maintaining and growing its Bitcoin holdings despite significant market volatility according to TradingView analysis.

By using equity issuance instead of cash reserves, the company is diluting existing shareholders to fund its long-term digital asset strategy.

The move underscores the company's ongoing strategy of treating Bitcoin as a core asset rather than a speculative one. The company's approach has drawn criticism for increasing exposure to Bitcoin's price swings, particularly as it buys into the market at a premium to its historical cost basis.

Despite these risks, Strategy has maintained a $2.25 billion cash reserve to cover potential financial obligations, which provides some insulation against further price declines.

What Does This Mean for the Broader Bitcoin Treasury Sector?

Strategy's continued accumulation reflects a broader trend of institutional adoption of Bitcoin as a long-term store of value. In 2025 alone, public companies and institutions added over 300,000 BTC to their treasuries, bringing total holdings to more than 1.085 million BTC.

Other companies are also expanding their Bitcoin holdings, including Hyperscale Data, which increased its treasury to about $49 million by January 11, 2026, and aims to reach $100 million through a dollar-cost-averaging strategy.

This trend is further supported by easing regulation and the popularity of Bitcoin ETFs. For example, major institutions like BlackRock have launched their own Bitcoin ETFs, and major banks like Wells Fargo have invested in these funds.

Additionally, index provider MSCI has decided to keep digital asset treasury companies in its indexes, providing further legitimacy to the sector.

However, the sector faces structural challenges. Over 100 companies that followed Strategy's model are now facing declining stock prices and shareholder value erosion due to equity dilution and lack of cash flow.

Is This Strategy Sustainable in the Long Term?

The sustainability of Strategy's approach depends on several factors. First, the company must continue to generate sufficient equity financing to fund future Bitcoin purchases without causing excessive shareholder dilution. Second, the company must navigate continued price volatility in Bitcoin, which has already led to a $17.44 billion in unrealized losses.

Third, the company's ability to maintain its market position in a highly competitive and evolving sector will depend on regulatory developments and investor sentiment. While Bitcoin ETFs and index inclusion are positive signals, they also introduce new sources of market volatility and competition.

Ultimately, Strategy's long-term success will depend on whether its approach to treating Bitcoin as a corporate treasury asset continues to attract and retain investor confidence despite its current challenges.