The firm announced on January 20, 2026, that it acquired 22,305 BTC for approximately $2.13 billion during the week of January 12-19, pushing its total holdings to 709,715 Bitcoin.
This massive purchase marks Strategy’s largest Bitcoin acquisition since July 2025, when the company bought 21,021 BTC for $2.47 billion. The latest buy was funded entirely through stock sales, raising questions about the sustainability of this aggressive accumulation strategy.
How Strategy Funded the Purchase
Strategy raised the $2.13 billion through its at-the-market equity offering program by selling multiple types of securities. The company sold 10.4 million shares of its Class A common stock, generating $1.83 billion in net proceeds. An additional $294.3 million came from selling 2.95 million shares of its STRC preferred stock, with smaller amounts from STRK preferred shares.
According to the SEC filing, the company paid an average price of $95,284 per Bitcoin, inclusive of all fees and expenses. This price point is notably higher than Strategy’s overall average purchase price of $75,979 per Bitcoin across all its holdings.
Source: @saylor
The company still has substantial capacity remaining under its stock offering programs, with approximately $38 billion available across different security types for future Bitcoin purchases.
The Path to 700,000 Bitcoin
Strategy’s journey to 700,000 Bitcoin accelerated dramatically in recent months. The company made 41 separate Bitcoin purchases throughout 2025, compared to just 18 purchases in 2024. This aggressive buying pace averaged 641 Bitcoin per day during 2025.
Just weeks before crossing the 700,000 milestone, Strategy made another significant purchase. Between January 5-11, the company acquired 13,627 BTC for $1.25 billion at an average price of $91,519 per Bitcoin.
Strategy’s total Bitcoin investment now stands at $53.92 billion. The company controls approximately 3.37% of Bitcoin’s maximum 21 million supply and 3.55% of currently circulating Bitcoin. This makes Strategy by far the world’s largest corporate Bitcoin holder, with only Satoshi Nakamoto’s estimated 1.2 million BTC and BlackRock’s IBIT ETF holding more Bitcoin.
Stock Performance Challenges
Despite reaching this historic milestone, Strategy’s stock faced significant pressure. MSTR shares dropped approximately 5-7% on January 20, 2026, following the announcement. The stock has fallen roughly 50% from its November 2024 peak of $543, currently trading around $158-175.
The company’s market capitalization of approximately $45-50 billion creates an unusual situation. At certain points in late 2025, Strategy’s Bitcoin holdings were actually worth more than the company’s total market value. This compression of the market-to-net asset value ratio from historical levels above 2.5x to current levels around 1.0x reflects growing investor concerns.
Analysts at TD Cowen downgraded their price target for MSTR from $500 to $440 while maintaining a Buy rating. The firm cited declining “Bitcoin Yield” for fiscal 2026, a metric Strategy uses to measure how effectively it increases Bitcoin holdings relative to share dilution.
The mathematics of Strategy’s business model are becoming more challenging. In 2021, the company needed just 2.6 Bitcoin to generate one basis point of yield. By 2025, that number jumped to 58 Bitcoin, making it progressively harder to deliver the same shareholder value as the Bitcoin treasury grows larger.
The 21/21 Plan and Future Ambitions
Strategy is executing an ambitious three-year capital raising plan announced in October 2024. The “21/21 Plan” aims to raise $42 billion through equity offerings and another $42 billion through fixed-income instruments and convertible notes, totaling $84 billion dedicated to Bitcoin purchases through 2027.
As of January 2026, the company is approximately 45% complete with this plan, having already acquired 194,180 Bitcoin since launching the initiative. Strategy maintains a $2.25 billion cash reserve to cover dividend and interest obligations without needing to sell Bitcoin, providing a cushion covering approximately 21 months of payment requirements.
Michael Saylor, Strategy’s executive chairman and the driving force behind the Bitcoin strategy, hinted at the latest purchase on January 18 with a social media post showing “₿igger Orange.” Market analysts widely interpreted this as a signal that Strategy would exceed its previous $1.25 billion purchase, which proved accurate when the $2.13 billion buy was announced two days later.
Polymarket prediction markets show 81% odds that Strategy will hold 800,000 or more Bitcoin by the end of 2026, suggesting the market expects the company’s aggressive accumulation to continue.
Regulatory and Competitive Headwinds
Strategy faces several significant challenges ahead. Global index provider MSCI considered excluding companies with more than 50% of their assets in digital currencies from its indexes, with a decision expected by January 15, 2026. JPMorgan analysts estimated this could trigger up to $8.8 billion in passive outflows if multiple index providers adopted similar policies.
The company also faces growing competition from Bitcoin spot ETFs, which offer institutional investors simpler exposure to Bitcoin without the complexity of Strategy’s business model. These ETFs attracted nearly $70 billion in investments by mid-2025 and saw $1.7 billion in inflows between January 12-15, 2026 alone.
On the positive side, legislative progress on the CLARITY Act could provide regulatory clarity for cryptocurrency markets. The bill passed the House of Representatives with strong bipartisan support in July 2025, receiving 294 votes in favor. However, the Senate Banking Committee postponed its scheduled January 15, 2026 markup due to disputes over stablecoin yield provisions. The Senate Agriculture Committee has now scheduled its markup for January 27, 2026.
Strategy transformed from MicroStrategy, a business intelligence software company, into what it now calls “the world’s first and largest Bitcoin Treasury Company” with a February 2025 rebrand. The company’s market value grew from $1.1 billion in August 2020 to approximately $45-50 billion today, despite recent stock price challenges.
The Orange Giant’s Next Chapter
Strategy’s achievement of surpassing 700,000 Bitcoin marks a defining moment in corporate cryptocurrency adoption. The company has successfully executed its vision of transforming a traditional software business into a Bitcoin accumulation vehicle, inspiring over 161 other publicly traded companies to add Bitcoin to their balance sheets. However, the compressed stock premium, dilution concerns, and growing ETF competition suggest Strategy’s model faces its biggest test yet in 2026. Whether Michael Saylor’s bet on Bitcoin as the ultimate treasury asset proves visionary or unsustainable will largely depend on Bitcoin’s long-term price trajectory and the company’s ability to maintain investor confidence despite ongoing share dilution.