Strategy Shares Under Pressure as Bitcoin Holdings Approach Loss Threshold

Strategy US5949724083

The world's largest corporate holder of Bitcoin is facing significant strain. A sharp decline in the cryptocurrency's value has pushed the company's massive portfolio into precarious territory, with unrealized losses briefly nearing the billion-dollar mark. As the share price touches a new multi-year low, market skepticism is mounting regarding management's aggressive accumulation strategy.

The extreme volatility in digital asset markets is having a direct and severe impact on the valuation of the company's reserves. Strategy currently holds a total of 713,502 Bitcoin, acquired at an average cost of $76,052 per coin. This positioning has become extremely delicate. Following a weekend price slump, the portfolio briefly showed paper losses of almost $1 billion before a minor recovery in Bitcoin's price.

Key Portfolio Metrics:
* Total Holdings: 713,502 BTC
* Total Capital Invested: Approximately $54.26 billion
* Average Purchase Price: $76,052 per Bitcoin
* Current Status: Hovering just above the breakeven point

Questionable Timing on Recent Purchase

The timing of the firm's most recent acquisition appears particularly unfortunate. On February 2, the company disclosed it had purchased an additional 855 Bitcoin for about $75.3 million, paying an average of $87,974 per unit. Shortly after this transaction was completed, the crypto market corrected sharply, with the price of Bitcoin falling below $75,000 for the first time since April 2025.

Equity Hits New Low

The market has reacted swiftly to the heightened risk profile. In pre-market trading on Monday, Strategy's stock declined to $138.49, establishing a fresh multi-year low. This drop continues a longer-term downward trend, with the shares having significantly underperformed the broader market on a year-to-date basis.

To fund its ongoing acquisition program, the company is employing aggressive capital-raising tactics. It recently increased the dividend on its Series A Preferred Stock to 11.25% to attract fresh capital dedicated to further Bitcoin purchases. This strategy facilitated the acquisition of over 27,000 units of the cryptocurrency in January 2026 alone.

The coming days are likely to prove critical for investor sentiment. Strategy is scheduled to release its fourth-quarter results on February 5. Due to changes in accounting standards, the quarterly fluctuations in the value of its Bitcoin treasury will now flow directly into reported earnings. This makes the upcoming financial report a crucial test for the perceived stability of the company's strategy.