MicroStrategy (Strategy) resumed Bitcoin (BTC) purchases in early January, acquiring 1,283 BTC for $116 million after selling shares. This contrasts with late December when they sold shares but bought minimal BTC.
Previously, Strategy financed purchases via low-cost convertible debt when its stock traded at a premium to Bitcoin NAV (mNAV).
As the premium diminished, financing shifted to higher-cost preferred shares. The dividend rate on STRC has increased to keep financing channels open.
Strategy now uses common stock issuance for purchases, causing dilution. High financing costs and dilution make Strategy a less reliable buyer.
In 2025, Strategy’s buying volume rivaled spot ETFs. However, for 2026, its impact will likely be less significant, with ETF flows becoming a more reliable driver.
