Michael Saylor's Strategy ($MSTR) Spends $2.13 Billion to Buy 22,305 Bitcoin

Strategy, formerly known as MicroStrategy, spent $2.13 billion to purchase 22,305 Bitcoin in January 2026, continuing its aggressive Bitcoin acquisition strategy. The firm has accumulated a total of 687,410 BTC as of the latest report.

The purchases were funded through the issuance of common and preferred equity, which has raised concerns about dilution and yield impacts.

Analysts at TD Cowen have revised their one-year price target for Strategy to $440 from $500, citing a weaker outlook for Bitcoin yield due to increased equity issuance. They now expect Strategy to acquire 155,000 BTC in fiscal 2026.

Despite the company’s aggressive buying, Strategy stock has fallen 62% from its peak, driven largely by Bitcoin’s 25% decline in the fourth quarter. Investors are concerned about the company’s leverage and the risk of a doom loop in which it must sell Bitcoin to meet financial obligations.

Why Did This Happen?

The decline in Strategy stock is attributed to a sharp compression of the company’s net asset value (NAV) multiplier, which dropped from 2.4x at its peak. This drop reflects heightened fear among investors about Strategy’s leverage and the potential for further losses.

Michael Saylor, Strategy’s chairman, has defended the company’s approach, arguing that holding Bitcoin is a rational use of capital compared to low-yield Treasurys or returning capital to shareholders in a declining market. He has emphasized that Bitcoin can offset weak operating results and provide a different risk-reward profile.

Strategy’s stock price has dropped around 52.67% in the past year, to $173.71 as of January 16. Despite this, the company’s Bitcoin holdings are currently in the green, with the price of BTC at $92,300. Saylor has hinted at further large-scale Bitcoin purchases, suggesting continued confidence in the asset.

Analysts have also noted that the company’s financial structure could face pressure in the coming years as convertible notes become exercisable. Strategy has indicated it has the resources to meet these obligations but has not ruled out selling some of its Bitcoin holdings if needed.

What Are Analysts Watching Next?

TD Cowen analysts expect a reversal in fiscal 2027, with Bitcoin yield accelerating to 8.1% and BTC $Gain rising to more than $13.5 billion. They base this on the expectation that the company will continue to acquire Bitcoin and that the average price of BTC will rise.

Investors are also watching whether Strategy is added to the S&P 500, which could boost its stock price through inflows from index funds. If Bitcoin’s price rises, Strategy’s stock is likely to benefit due to the company’s heavy exposure to BTC.

Broader implications for corporate adoption of Bitcoin remain under scrutiny. As of January 2026, publicly listed companies hold about 1.1 million BTC, or 5.5% of the total supply. While Strategy is the largest holder, other companies have also adopted Bitcoin as a treasury asset, albeit in smaller amounts.

Regulatory developments are also in focus. Congressional efforts to create a legal framework for digital assets, including the Genius Act and Clarity Act, aim to balance innovation with risk mitigation. Critics argue that these efforts may fall short due to underfunded and understaffed regulatory agencies.

The debate over corporate Bitcoin treasury strategies continues. Saylor and others argue that holding Bitcoin is a sound capital allocation decision, while critics highlight the risks of leverage and volatility. The outcome will likely influence how other companies approach digital assets in the coming years.