Strategy's Record Bitcoin Purchase Tests Investor Confidence Ahead of Earnings
Published on 04/21/2026 at 18:44 | Redaktion boerse-global.de
Strategy has solidified its position as the world's largest corporate holder of Bitcoin, but the path it took reveals deepening financial complexities. The company purchased 34,164 Bitcoin in a single week between April 13 and 19, 2026, spending $2.54 billion at an average price of $74,395 per coin. This acquisition, its largest weekly buy of the year, pushed its total holdings to 815,061 BTC, surpassing the holdings of BlackRock's iShares Bitcoin Trust (IBIT), which holds approximately 802,800 coins.
The purchase was fully funded by selling its own equity. Strategy sold nearly 21.8 million of its Series A preferred shares (STRC), netting $2.18 billion, supplemented by the sale of common stock for an additional $366 million. This aggressive funding strategy highlights the core of its business model: issuing shares to buy more Bitcoin. The company still has substantial capacity for future purchases, with roughly $26.73 billion available under its common stock program and a further $19.46 billion under its STRC program.
Investor reaction has been notably positive in the short term. The common stock gained about 26 percent over the past seven trading sessions, closing at 146.54 Euro. In dollar terms, the share price reached $170.81 on Monday, April 22. This surge occurred despite the stock remaining down roughly 51 percent year-to-date. A key metric for the company, the mNAV ratio, recovered from 0.84 on April 13 to around 1.23 by April 20. This return to a premium over net asset value is critical, as it allows Strategy to profitably issue new shares to fund further Bitcoin acquisitions.
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However, significant challenges loom on the horizon, set to be addressed in the upcoming earnings call on May 5. The company will report first-quarter results after the U.S. market closes, and the figures are expected to show the strain of Bitcoin's price volatility. Unrealized losses on digital assets for Q1 amounted to $14.46 billion, partially offset by a deferred tax benefit of $2.42 billion. The book value of the Bitcoin holdings was $51.65 billion as of March 31.
The financial strain extends to shareholder returns. The liquidity reserve covering dividend payments for the preferred shares has diminished, reducing the coverage period from about 24 months to approximately 18 months. Analysts estimate a shortfall of around $728 million is needed to restore the 24-month buffer. In a move aimed at providing more stability, management has proposed changing the dividend payment schedule for STRC shares from monthly to bi-weekly, a measure shareholders will vote on at the annual meeting on June 8. The company maintains a cash reserve of $2.25 billion to cover these payments for about 30 months, negating the need to liquidate Bitcoin.
With a total investment of $61.56 billion and an average cost basis of $75,527 per Bitcoin, Strategy's massive position is nearly break-even with Bitcoin trading around $75,420. The company's proprietary "BTC Yield" metric, measuring Bitcoin accumulation per diluted share, stands at 9.5 percent for 2026 so far. How management navigates the conversation around massive paper losses and the sustainability of its high-yield dividend model will be a decisive test for the confidence of its preferred shareholders.
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