The newly raised funds primarily supported the expansion of Strategy’s bitcoin treasury program. As of December 31, the company held 713,502 bitcoin. The total includes 41,002 tokens acquired in January 2026, demonstrating an accelerated purchasing pace despite heightened market volatility. Strategy values its cumulative bitcoin purchases at $54.26 billion, translating to an average cost basis of roughly $76,000 per token.
Alongside the earnings release, Strategy provided an update on more recent activity. Between January 26 and February 1, the company bought an additional 855 bitcoin for approximately $75.3 million, paying an average price of $87,974 per coin. Management said the latest acquisition aligns with its objective to “amplify” bitcoin exposure per share for common-stock investors.
Strategy’s flagship digital-credit instrument, known as STRC, grew to $3.4 billion in notional size by year-end. The instrument, which resembles a traditional corporate note but is collateralized by bitcoin, benefits from what the company described as “increasing liquidity and declining volatility.” A variable dividend-rate mechanism tied to market conditions is currently set at 11.25%. Executives said the feature has helped keep the STRC trading price close to its $100 par value even while bitcoin prices drifted lower during the quarter.
Chief Executive Officer Phong Le told investors on the earnings call that Strategy remains focused on expanding STRC in 2026 as a means to “drive growth in Bitcoin Per Share.” Company officials also pointed to the over-collateralization of existing convertible debt as a buffer against further digital-asset price swings. According to management, the debt would remain fully covered even if bitcoin were to fall by as much as 80 percent from prevailing levels.
Despite those assurances, equity analysts responded cautiously to the results. Brokerage firm BTIG cut its 12-month price target on Strategy’s shares to $250 from $630 while maintaining a Buy rating. The firm cited the sharp, real-time pullback in bitcoin prices—roughly 8 percent in the hours leading up to the earnings call—as the primary driver of its valuation adjustment. BTIG nonetheless highlighted Strategy’s cash reserves, noting the company holds sufficient U.S. dollar liquidity to cover 30 months of preferred-equity dividends without relying on further capital markets activity.
Market reaction to the earnings news was mixed. Strategy shares initially fell in after-hours trading Thursday as investors digested the larger-than-expected loss and the immediate pressure from bitcoin’s price decline. The stock later pared some losses after management emphasized the firm’s cash position and reiterated its strategy of leveraging traditional capital-market instruments to accumulate additional digital assets.
The fourth-quarter report arrives during a period of heightened regulatory and macroeconomic scrutiny for the broader cryptocurrency sector. Federal agencies, including the U.S. Securities and Exchange Commission, continue to explore policy updates that could affect corporate holdings of digital assets. Public filings show an increase in the number of companies adding bitcoin to their balance sheets, though Strategy remains by far the largest corporate holder.
Strategy did not issue formal guidance for 2026 revenue or earnings, but executives reiterated plans to pursue additional bitcoin purchases when market conditions allow. They also signaled potential future offerings of STRC or similar instruments to finance expansion of the treasury program. The company’s ability to tap debt and equity markets at scale will likely remain central to its operating model, especially if bitcoin prices stay volatile.
For investors, the immediate questions revolve around the durability of Strategy’s financing pipeline and the path of the underlying cryptocurrency. With roughly three-quarters of the company’s total asset base tied directly to bitcoin’s market value, quarterly operating metrics may continue to be overshadowed by price movements in the digital-asset market.
Still, Strategy’s management maintains that its approach offers shareholders leveraged exposure to bitcoin within a U.S.-listed equity framework. The firm argues that its combination of cash reserves, over-collateralized debt, and variable-rate dividend instruments provides a cushion against protracted downturns, although critics note that the strategy amplifies both upside and downside risk.
As of February 1, bitcoin traded near $38,000, down from the high-$40,000 range observed earlier in January. Strategy’s average cost basis remains above spot levels, suggesting short-term pressure on mark-to-market valuations if prices fail to recover. Management, however, stated during the call that its view on bitcoin remains “long term” and that daily price volatility does not alter its fundamental thesis.
Looking ahead, analysts will monitor additional disclosures on STRC performance, potential capital raises, and any regulatory developments that could influence corporate bitcoin holdings. Strategy’s next significant milestone will be its first-quarter 2026 results, expected in late April, which could provide further insight into the pace of new bitcoin purchases and the performance of its digital-credit instruments amid evolving market conditions.
Crédito da imagem: TipRanks
