Strategy Acquires $1.25 Billion in Bitcoin, Largest Purchase Since July

Strategy Inc. acquired 13,627 Bitcoin for approximately $1.25 billion between January 5 and January 11, 2026 according to Bloomberg.

• The purchase increased Strategy's total Bitcoin holdings to 687,410 coins, with an aggregate purchase price of $51.8 billion as reported.
• The acquisition was funded through at-the-market sales of its common and preferred stock, generating $1.25 billion in net proceeds according to Investing.com.

Strategy Inc. announced its largest Bitcoin purchase since July 2025, acquiring 13,627 Bitcoin for approximately $1.25 billion in cash as reported by Yahoo Finance. This acquisition follows a $17.44 billion unrealized loss in the fourth quarter of 2025 due to Bitcoin's 24% price decline according to Bloomberg. The company is continuing to build its Bitcoin holdings as part of its strategic treasury model, despite the volatility and financial challenges posed by market conditions according to Yahoo Finance.

The acquisition was funded through the sale of 6.8 million shares of Class A common stock and 1.2 million shares of Variable Rate Series A Perpetual Stretch Preferred Stock, generating $1.13 billion and $119.1 million in net proceeds, respectively as reported by Yahoo Finance. Strategy has retained a $2.25 billion cash reserve to support future obligations without needing to sell Bitcoin according to Bitcoin Magazine. This move aims to ensure the company's financial stability while maintaining its commitment to Bitcoin as a core asset according to Bitget.

The average price per Bitcoin for this recent batch was $91,519, higher than the company's overall average cost basis of $75,353 according to Bitbo. The company now holds 687,410 Bitcoin, representing a significant portion of the total Bitcoin supply as reported on StockTwits. Despite a $17.44 billion unrealized loss in the fourth quarter, the company remains committed to its Bitcoin-first treasury model, with Bitcoin continuing to be viewed as a hedge against inflation according to Yahoo Finance.

What Happened to Bitcoin's Price and Strategy's Holdings?

Bitcoin's price dropped by 24% in the fourth quarter of 2025, leading to a $17.44 billion unrealized loss for Strategy according to Bloomberg. This price decline raised concerns about the company's ability to meet financial obligations without selling Bitcoin according to Bitbo. To address this, Strategy established a $2.25 billion cash reserve by selling common and preferred stock. The company's Bitcoin stockpile is now valued at approximately $62 billion, despite the falling share price.

Strategy has continued to acquire Bitcoin since August 2020, with the digital asset now making up a significant portion of its balance sheet. The company's strategy of using stock sales to fund Bitcoin purchases reflects its long-term commitment to the asset, despite the volatility and challenges in the market. Strategy's total Bitcoin holdings are now valued at over $62 billion, with the company controlling more than 3.2% of the total Bitcoin supply.

What Does This Mean for Strategy's Financial Strategy and Investor Confidence?

Strategy's decision to raise $1.25 billion through equity issuance and use the proceeds to purchase Bitcoin highlights its aggressive treasury strategy. The company now holds 687,410 Bitcoin, with an average purchase price of $75,353 per coin. This strategy has led to significant unrealized losses in the fourth quarter of 2025, but the company continues to view Bitcoin as a long-term strategic asset.

The company's financial strategy involves balancing its Bitcoin investments with its cash-generating capacity and investor expectations. By maintaining a $2.25 billion cash reserve, Strategy aims to meet future obligations such as dividend payments and interest on outstanding debt. The company's approach has raised investor concerns, particularly regarding its ability to sustain its Bitcoin investments without generating positive cash flow from its software business.

What Are the Broader Implications for the Bitcoin Market?

Strategy's continued acquisition of Bitcoin has reinforced its position as one of the largest institutional holders of the digital asset. The company's Bitcoin-first treasury model has influenced other firms to consider Bitcoin for corporate treasury diversification. With over 687,410 Bitcoin in its portfolio, Strategy now controls more than 3.2% of the total Bitcoin supply.

The company's strategy has contributed to growing institutional conviction in Bitcoin, signaling to the market that Bitcoin is increasingly being viewed as a legitimate store of value and potential global reserve asset. Despite the volatility and challenges, Strategy's actions have underscored the long-term potential of Bitcoin as a strategic asset for institutional investors.