Strategy’s Shareholder Dilution Weighs on Investor Sentiment

Strategy US5949724083

Strategy Inc. has bolstered its cryptocurrency reserves with another major purchase, yet its stock price is facing significant headwinds. The market's tepid response highlights growing investor concern over the company's method of financing its aggressive accumulation of digital assets.

Corporate filings reveal that between December 22 and 28, Strategy allocated approximately $108.8 million to acquire digital assets. This investment secured an additional 1,229 Bitcoin at an average price of $88,568 per coin. To fund this purchase, the company utilized an "At-The-Market" (ATM) equity offering program.

This financing mechanism involved the sale of roughly 663,450 new shares directly into the open market. While this transaction increases the absolute number of Bitcoin held on the company's balance sheet, it simultaneously reduces the proportional ownership stake of existing shareholders. This dilution effect is becoming a focal point of market skepticism, overshadowing the expansion of the asset base.

Mounting Criticism and Eroding Premium

The company's total Bitcoin holdings have now swollen to 672,497. Despite this growing treasury, the stock remains under substantial pressure. Prominent critics, including economist Peter Schiff, have warned that the costs associated with this capital-raising strategy and the persistent dilution of shares could erode real returns for investors.

Market observers note another troubling trend: the stock's once-substantial premium to its Net Asset Value (NAV)—the underlying value of its Bitcoin holdings—has contracted markedly. The share price is now tracking the pure asset value more closely, having shed much of its previous speculative premium.

Key technical and price data illustrate the current weakness:
* Recent Closing Price: $156.71
* Year-to-Date (YTD) Performance: -46.41%
* Distance from 52-Week High: -60.00%

The shares are currently trading well below their 200-day moving average, a technical indicator that reinforces the persisting long-term downtrend.

Future Focus and Financial Reserves

All eyes are now on the upcoming quarterly results, scheduled for release on February 4, 2026. Strategy's management retains considerable dry powder for further acquisitions, with cash reserves still standing at about $2.2 billion. However, the debate surrounding the cost and method of funding these purchases is expected to dominate investor discourse well into the new year.