Michael Saylor's Strategy kicks off 2026 with a $116 million bitcoin buy as its total treasury holdings hit 673,783 BTC

Michael Saylor’s company, Strategy, acquired 1,287 bitcoins for $116 million in early 2026, bringing its total holdings to 673,783 BTC. The purchase was funded through sales of common stock and boosted the company’s cash reserve to $2.25 billion. The move underscores the firm's continued commitment to Bitcoin as a core asset.

The company’s Q4 financial report is expected to show a multibillion-dollar unrealized loss tied to a 24% drop in Bitcoin’s price. This reversal follows a $2.8 billion profit in the prior quarter, highlighting the volatility and risk inherent in Strategy’s treasury-heavy model. The accounting method adopted in early 2024, which values Bitcoin at market price, amplifies this volatility’s impact.

Strategy’s stock price fell sharply in 2025, dropping nearly 70% from its November 2024 peak. This decline raised concerns about the company’s ability to fund dividends and interest obligations without selling Bitcoin. To address this, Strategy raised $1.44 billion in cash reserves in December 2025.

Why Did Strategy Continue to Buy Bitcoin in Early 2026?

Strategy’s decision to acquire more Bitcoin in early 2026 reflects its long-term strategy to maintain Bitcoin as a central asset. Executive Chairman Michael Saylor has emphasized that volatility is a natural aspect of the cryptocurrency, and the company aims to reduce its average cost basis.

The purchase was executed at an average price of $90,000 per Bitcoin, slightly above the market price at the time. This aligns with the company’s goal of acquiring Bitcoin at attractive prices amid market fluctuations as market conditions evolved.

How Did Markets React to Strategy’s Bitcoin Purchase?

Strategy’s shares rose by 4.24% in pre-market trading on January 5, 2026, as Bitcoin prices also increased. The company’s stock surged alongside the broader market’s optimism about Bitcoin’s recovery. This upward trend contrasted with the 53% drop in Strategy’s share price in the fourth quarter.

Analysts noted that Strategy’s mNAV (market-to-net-asset-value) ratio stood at 1.02, just above the 1.0 threshold that could trigger selling pressure. The proximity to this level raised concerns about the stock’s value proposition compared to direct Bitcoin ownership.

What Are Analysts Watching for in 2026?

The company’s mNAV remains a key metric for investors. If the stock’s valuation slips below the value of its Bitcoin holdings, it could signal a loss of confidence in the corporate model. Strategy’s shares currently trade at a discount to the value of its Bitcoin reserves, raising questions about the sustainability of its funding strategy.

Another key focus is Strategy’s ability to maintain its cash reserves. The company increased its reserve to $2.25 billion through stock sales, providing enough liquidity to cover 32.5 months of dividend payments. This reserve helps reduce the need to sell Bitcoin for short-term obligations as the company continues to build reserves.

Saylor’s net worth declined by 40% in 2025 as Bitcoin prices fell, according to the Bloomberg Billionaires Index. His personal stake in the company's success is a point of interest for investors, given his long-term advocacy for Bitcoin as a store of value.

Outlook for Strategy in 2026

Strategy is expected to report a significant loss for Q4 2025 due to Bitcoin’s price decline. This loss would contrast with the previous quarter’s $2.8 billion profit and highlight the risks of holding large cryptocurrency reserves. The company's updated guidance for 2025 assumed a Bitcoin price range of $85,000 to $110,000 by year-end, pushing the final outcome toward the lower end.

Despite these challenges, Strategy’s aggressive Bitcoin accumulation strategy continues to attract attention. Saylor has suggested that the company may pivot to issuing digital credit products backed by its Bitcoin holdings. This shift could provide more predictable returns and reduce reliance on price volatility.

The company’s long-term success will depend on its ability to balance Bitcoin’s price swings with stable cash flows and strategic financial management. As the corporate treasury model evolves, investors will closely monitor how Strategy adapts to the changing landscape of institutional crypto ownership as the company navigates these challenges.