Michael Saylor and his company Strategy have once again demonstrated their commitment to Bitcoin, announcing the acquisition of an additional 10,624 Bitcoin. This move significantly expands Strategy's already substantial Bitcoin treasury, reinforcing its position as the world's largest public holder of the cryptocurrency. This latest acquisition is not an isolated event but rather a continuation of a well-defined capital strategy centered on the belief that Bitcoin serves as the ultimate reserve asset.
Why Strategy Bought Another 10,624 Bitcoin
Strategy acquired 10,624 BTC between December 1 and December 7 for approximately 962.7 million dollars. The average purchase price per coin was 90,615 dollars. This marks the firm's most significant Bitcoin purchase since July and is part of its ongoing strategy to accumulate the asset across all market cycles. Following this acquisition, the company's total Bitcoin holdings have reached 660,624 BTC, valued at roughly 60 billion dollars. The average acquisition price remains considerably below the current spot price, at 74,696 dollars, resulting in approximately 10.6 billion dollars in unrealized gains, even after recent market pullbacks.
This accumulation represents a substantial portion of the total Bitcoin supply, exceeding 3 percent. No other corporation has historically held such a large position, and no other executive has so heavily concentrated their capital strategy on a single asset.
How Strategy Funded the Purchase
The recent acquisition was not funded through debt or the depletion of existing cash reserves. Instead, Strategy utilized its at-the-market programs to sell Class A common stock and preferred stock. In the past week alone, the company sold over 5.1 million MSTR shares, generating 928.1 million dollars. Additionally, it issued 442,536 STRD preferred shares, raising 34.9 million dollars. These sales represent only a portion of Strategy's available capital-raising capacity, with over 13 billion dollars in MSTR and more than 4 billion dollars in STRD capacity remaining under current programs.
These financial instruments are part of the firm's broader 42/42 plan, which was later expanded to target 84 billion dollars in equity and convertible fundraising, intended to support Bitcoin purchases through 2027. Each type of preferred stock carries its own risk profile. For instance, STRD is a non-convertible preferred stock offering a 10 percent dividend. STRK is the convertible version, providing an 8 percent dividend and upside exposure. STRF is a more conservative option with a cumulative 10 percent payout, while STRC offers monthly payments with an adjustable rate designed to maintain its par value.
This diverse mix of financial instruments provides Strategy with significant flexibility. It allows the company to raise capital at a lower cost, cater to various investor preferences, and maintain consistent purchasing power.
The New 1.44 Billion Dollar Cash Reserve
Strategy has recently enhanced its financial stability by establishing a 1.44 billion dollar USD Reserve. This dedicated pool of cash is designated to cover preferred stock dividends and debt interest payments for a minimum of the next eighteen months. Bitwise CIO Matt Hougan highlighted that this reserve alleviates concerns about Strategy needing to sell Bitcoin to meet its financial obligations in the near future. The company's first significant debt maturity is not scheduled until February 2027.
Alternative interpretations of this reserve exist. CryptoQuant suggested that Strategy might be preparing for a prolonged bear market anticipated in 2025, with its Head of Research forecasting a Bitcoin trading range between 70,000 and 55,000 dollars for the upcoming year. However, even under such a scenario, the firm's long-term operational runway is not expected to be significantly challenged.
Michael Saylor has consistently stated that the company's capital structure is designed to withstand a 90 percent market drawdown that could last for several years. While shareholders might experience considerable pain during such an extreme event, the company itself is unlikely to face liquidation.
DAT Companies and the Market Reality
Strategy's innovative model has given rise to a new category of publicly traded firms known as DATs—Digital Asset Treasuries. Currently, approximately 190 such companies operate in this space, including mining companies, financial firms, and entities specifically focused on asset treasuries. Following Strategy, the leading Bitcoin holders among these companies are MARA with 53,250 BTC, Twenty One with 43,514 BTC, and Metaplanet with 30,823 BTC.
However, the performance of DATs has not been uniformly positive. Many of these companies have experienced significant declines in their share prices since the summer. Strategy's stock, for example, has fallen 61 percent from its peak, and its market-cap-to-NAV ratio is currently around 0.86. CoinShares analyst James Butterfill has argued that the surge in DATs has deviated from their initial purpose. Instead of focusing on disciplined treasury diversification, some companies have pursued token-per-share growth, leading to dilution.
Butterfill observed that the market is currently in a phase of re-evaluation, distinguishing between DATs that possess a sound capital strategy and those that were primarily driven by market momentum.
What This Means for Strategy’s Long-Term Bet
Strategy's stock experienced a 3.8 percent decline on Friday and is currently down more than 40 percent for the year. In contrast, Bitcoin has seen a more modest decrease of only 1.5 percent in 2025. Despite these market fluctuations, Saylor has remained steadfast in his strategy, continuing to acquire Bitcoin, expand capital programs, and reinforce the company's treasury strategy. Analysts at JPMorgan still consider Strategy a key entity influencing Bitcoin's short-term price trajectory.
The core message is straightforward: Strategy is not operating as a typical technology company or a mining operation. Instead, it is functioning as a sovereign wealth fund with Bitcoin at its core. By leveraging equity, preferred stock, and meticulous reserve management, the company is extending its purchasing power over the long term. Whether this model will serve as a blueprint for other companies or remain a unique Strategy experiment hinges on Bitcoin's performance throughout the upcoming market cycle.
One aspect is unequivocally clear: few corporate financial endeavors in history have been as ambitious, as transparent, or as closely scrutinized as this one.