Strategy’s Billion-Dollar Bitcoin Bet Amidst Share Price Plunge

Strategy US5949724083

Despite a severe correction in its share price, the company formerly known as MicroStrategy has dramatically amplified its commitment to cryptocurrency. In a bold move that defies recent market turbulence, Strategy's leadership has executed one of the largest Bitcoin acquisitions in the firm's history, choosing to double down rather than reduce risk. This aggressive accumulation strategy, however, continues to face investor skepticism, with growing concerns over valuation and competitive pressures weighing heavily on the stock.

The equity is facing significant headwinds, currently trading near 139.50 Euros. This represents a staggering loss of over 60% from its peak earlier in the year. The core issue lies in the stock's premium to its net asset value (NAV), which has evaporated dramatically. While the multiplier stood at 2.4x at the end of 2024, it has collapsed to approximately 1.1x by January 2026.

Market experts point to two primary factors driving this de-rating:
* Leverage Anxiety: Institutional investors are wary of the company's high financial leverage during a period of pronounced market volatility.
* Eroding Moat: Strategy's pioneering "corporate treasury" model is no longer unique. Over 100 competitors now employ a similar strategy, diluting its standing as a pure-play Bitcoin proxy.

A Record Purchase Financed by Equity

Undeterred by the bleak share price performance, the firm made a massive addition to its crypto reserves. Between January 12 and 19, 2026, Strategy purchased approximately 22,305 Bitcoin for about $2.13 billion. This marks its most substantial weekly acquisition since November 2024. The purchase expands the company's total holdings to a formidable 709,715 BTC, acquired at an average price of just under $76,000.

The company funded this move, as it has previously, by issuing new shares. Management consistently utilizes its "At-the-Market" offering program to raise capital from investors and immediately deploy it into cryptocurrency.

Analyst Bullishness Persists

In contrast to the market's pessimistic reaction, some analysts maintain a highly optimistic outlook. TD Cowen, for instance, reaffirms a price target of $440 for the stock. This implies a potential near-tripling from current levels. Their thesis rests on two pillars: Strategy's ability to grow its Bitcoin-per-share ratio even without a high trading premium, and a recent shift in its financing approach.

The company has adjusted its capital structure, moving away from convertible notes and increasingly utilizing perpetual preferred equity. This change mitigates refinancing risk by eliminating the pressure of fixed maturity dates.

All eyes are now on the upcoming close date of February 5, 2026. Strategy will then release its fourth-quarter results, providing a critical test of whether its core strategy remains viable in an environment of contracting valuations.

@ boerse-global.de | US5949724083 STRATEGY’S