Strategy holds bitcoin at $8.2 billion debt and 69% loss

• Strategy’s bitcoin holdings briefly moved below the firm’s average purchase price before recovering as the market rebounded
• Shares of Strategy fell 6.4% and are down 69% from their July peak while the company carries $8.2 billion in debt
• Strategy and top spot bitcoin ETFs hold coins at an average cost of $85,360 according to Bianco Research

The bitcoin holdings of Michael Saylor’s Strategy briefly slipped into the red this week, underscoring renewed pressure on cryptocurrency values in early 2026. A short-lived drop in bitcoin’s price pushed the token below the company’s average acquisition cost, before a subsequent rebound moved it back above that level. The episode highlights how closely Strategy’s market fortunes now track the digital asset it has accumulated at massive scale.

Bitcoin price swings test Strategy’s accumulation approach

Strategy reported on Monday that it added 855 bitcoin during the week ending Feb. 1. The company said it paid an average of $87,974 for this latest tranche, expanding its already large bitcoin position despite the recent market pullback. Following the purchase, Strategy now holds 713,502 bitcoins in total, with an average purchase price of $76,052 across all acquisitions.

Overnight trading saw bitcoin dip below $76,000, briefly putting the firm’s bitcoin portfolio below its aggregate cost basis. The move left the company’s holdings technically underwater for a short period. By later trading, however, bitcoin had recovered to above $77,500, lifting the market value of Strategy’s stash back above its average entry price.

The price action underlined the sensitivity of Strategy’s balance sheet to relatively small shifts in the bitcoin market. With hundreds of thousands of coins on its books, even a move of a few thousand dollars per coin can translate into major swings in unrealized gains or losses. The latest purchases at nearly $88,000 per coin also sit well above both the firm’s historical average and the overnight low, reflecting the volatility that continues to define the asset class.

Market reaction and Strategy equity performance

Equity investors responded sharply to the turbulence in cryptocurrency prices. Strategy shares fell 6.4% in recent morning trading, positioning the stock for its lowest closing level since Sept. 18, 2024. The decline adds to a prolonged slide that has seen the stock drop 69% from its peak in July.

The company’s share price has long been viewed as a leveraged play on bitcoin, and the latest downturn reaffirmed that relationship. As the token’s value slipped below key reference levels such as Strategy’s average acquisition cost, the stock extended its retreat. The rebound in bitcoin above $77,500 provided some relief on the asset side of the balance sheet but did not erase the equity selloff.

Despite the stock’s steep drawdown, the company does not face immediate balance sheet stress based on current disclosures. Strategy has $8.2 billion in debt outstanding, but only a small portion of that total is scheduled to mature in 2027, according to data from FactSet. The firm also reports that it has 30 months of dividend coverage, suggesting it expects to meet shareholder payout commitments without near-term financing changes.

These factors may give the company room to maintain its bitcoin-focused approach even as its share price comes under pressure. However, the widening gap between its equity market value and the scale of its digital asset exposure continues to attract attention from both supporters and critics of this approach.

Broader bitcoin investment strategy across major holders

The cost basis of Strategy’s holdings is now part of a larger picture that includes other major institutional buyers of bitcoin. Jim Bianco of Bianco Research calculated that Strategy and the 11 leading U.S. spot bitcoin exchange-traded funds, including the iShares Bitcoin Trust ETF, have together acquired their bitcoin at an average price of $85,360.

That figure stands well above Strategy’s overall average purchase cost of $76,052 but below the nearly $88,000 the company paid for coins in the week to Feb. 1. It also frames the recent dip in bitcoin’s price in a broader context: when the token briefly traded below $76,000, it moved under Strategy’s aggregate cost basis but remained below the average level cited for Strategy plus the top spot ETFs.

The comparison illustrates how different waves of institutional adoption have entered the market at varying price points. Strategy began building its position earlier and at lower levels on average, while many of the spot bitcoin ETFs launched or scaled up more recently, during periods of higher pricing. As a result, strategy choices on timing and pace of accumulation have produced distinct risk profiles, even among large holders with similar long-term views on the asset.

Short-term price swings now affect not only corporate balance sheets like Strategy’s, but also the performance of regulated investment vehicles that appeal to a broader base of investors. The alignment or divergence between these actors’ average costs may influence how each responds to extended downturns or sharp rallies, especially as bitcoin and ethereum ETF flows continue to shift between inflows and outflows.

Conclusion

The brief period in which Strategy’s bitcoin trove fell below its average acquisition cost underscored the impact of rapid price moves on one of the largest corporate holders of the cryptocurrency. A subsequent rebound above $77,500 pulled the position back into positive territory on a cost basis, but the company’s share price continued to slide, extending a 69% drop from its July peak.

With $8.2 billion in debt and limited near-term maturities, alongside 30 months of dividend coverage, Strategy retains financial flexibility to sustain its current course. Its position also sits within a wider landscape in which Strategy and the largest spot bitcoin ETFs have accumulated holdings at an average of $85,360 per coin, according to Bianco Research. As bitcoin’s volatility persists, these overlapping but distinct investment footprints will remain central to assessing how corporate and institutional participants navigate the evolving market.

Disclaimer

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