Strategy Boosts Bitcoin Reserves with Latest 1,287 BTC Purchase

Strategy Inc (MSTR) added 1,287 bitcoin to its holdings in early January 2026. The purchases occurred between late December 2025 and January 4, 2026, and were made at an average price of $90,000 per coin according to the report. The latest acquisition brings its total holdings to 673,783 bitcoin, valued at $50.55 billion as of January 4, 2026 as reported.

The company funded the purchases using proceeds from its at-the-market offering program. Between December 29 and January 4, Strategy raised $116.3 million through the sale of 735,000 Class A common shares according to reports. Strategy's cash reserves also increased by $62 million to reach $2.25 billion according to market data. The cash is intended to support dividend payments on preferred stock and interest on debt as noted.

Unrealized losses on digital assets remain a key concern for the firm. In the fourth quarter of 2025 alone, Strategy reported a $17.44 billion unrealized loss on bitcoin, with an associated $5.01 billion deferred tax benefit. For the full year, it reported a $5.40 billion unrealized loss, indicating continued market volatility impacts.

Why Did This Happen?

Strategy's acquisition strategy is part of its broader effort to position bitcoin as a core corporate asset. The company, led by Executive Chairman Michael Saylor, has been buying bitcoin at a steady pace since 2020. The latest purchases were made amid a broader trend of institutional interest in digital assets, particularly as firms look for alternatives to traditional treasury reserves.

The company has maintained a disciplined funding approach. Instead of relying on debt or equity financing, it uses proceeds from common stock sales to fund its purchases and cash reserves. This strategy has allowed it to expand its holdings while maintaining liquidity as observed.

How Did Markets React?

Strategy's shares saw a modest premarket rise of 4.5% following the announcement of the latest purchases. This came alongside a weekend increase in bitcoin prices to $92,900. However, the company's stock has declined sharply in recent months, dropping 70% from its November 2024 high. This decline has outpaced the 25% drop in bitcoin's value over the same period.

Investor sentiment has also been influenced by broader market trends. U.S.-listed spot bitcoin ETFs recorded their largest outflows on record in November and December 2025, as prices fell nearly 20%. The pullback in institutional interest has raised questions about the sustainability of the corporate-treasure model according to market analysis.

What Are Analysts Watching Next?

Analysts are closely watching how Strategy manages its balance sheet in 2026. The company has $41.5 billion available for future stock sales across its at-the-market programs according to financial reports. However, its current ratio of 0.66 and a debt-to-equity ratio of 0.14 suggest it faces liquidity challenges.

Another key focus is how the broader crypto market evolves. Coinbase and other major players are anticipating regulatory clarity and institutional adoption to drive growth in 2026. If market conditions improve, Strategy could benefit from increased bitcoin prices and renewed investor confidence.

The firm is also competing with other large institutional buyers, including Tether, which added 8,888 bitcoin in Q4 2025 to its holdings of more than 96,000 BTC. Tether's strategy, which allocates 15% of quarterly profits to Bitcoin, highlights the growing institutional demand for the asset.

For now, Strategy remains the world's largest publicly traded bitcoin holder, with its latest purchase reinforcing its long-term commitment to digital assets.