Author: Blockworks
Compiled by: TechFlow
TechFlow Introduction: Strategy holds nearly 680,000 Bitcoins, but its financing model is quietly shifting. From zero-coupon convertible bonds in 2024 to high-cost preferred stock plus dilutive equity issuance in 2026, the Bitcoin content per share is being diluted. This article breaks down the actual impact of this structural change on BTC prices—notably, its buying will shift from continuous to intermittent.
Strategy has re-emerged as a visible treasury buyer in the Bitcoin market, but the financing backdrop is vastly different compared to 2024-2025.
At the end of last December, Strategy completed a financing round but deployed almost none of the funds into Bitcoin. From December 29 to 31, the company sold 1,255,911 shares of MSTR, raising a net $195.9 million, yet only bought 3 Bitcoins. Deployment resumed in January: from January 1 to 4, it sold another 735,000 shares, raising a net $116.3 million, and bought 1,283 Bitcoins at an average price of $90,391 per coin, spending $116 million. Its total holdings thus rose to 673,783 coins.
A more crucial signal lies in the change in financing structure. From 2024 to early 2025, Strategy financed via low-cost convertible bonds—with cash coupons of only 0.625% to 2.25%, and later issued multiple zero-coupon convertible bonds. This strategy worked best when MSTR traded at a premium to its Bitcoin NAV (mNAV > 1), as the equity option value itself was attractive.
Looking over a longer timeline, the marginal buying in 2025 was essentially driven by two horses: spot ETFs and Strategy. From the cumulative accumulation chart, Strategy's buying was on par with ETF inflows for a significant portion of the year, meaning its influence on price was comparable to the ETF group at certain stages.
The conditions in 2026 are clearly weaker. As the mNAV narrows, the financing method shifts to preferred stock with double-digit costs and dilutive ATM common stock issuance. It will be difficult for Strategy to continue large-scale buying without worsening the Bitcoin content per share. Strategy remains a barometer of market sentiment, but its buying pressure will become more moderate and intermittent. ETF fund flows and overall crypto market risk appetite will become more reliable price-determining forces.
