Strategy’s relentless accumulation of Bitcoin continues unabated, with its latest $1 billion purchase pushing its total holdings to 780,897 coins. The company now controls over 3.7% of the entire Bitcoin supply and is within striking distance of the symbolic 800,000 BTC milestone. However, the method of financing this latest acquisition is drawing increased scrutiny from market observers, highlighting a complex and layered capital structure.
The company funded the purchase entirely through its Series A variable-rate preferred stock, known as STRC. Between April 6 and 12, Strategy sold over ten million shares of STRC, raising net proceeds of approximately $1.001 billion. This capital was immediately deployed to buy 13,927 Bitcoin at an average price of $71,902 per coin. This mechanism avoids diluting common MSTR shareholders but creates a growing tier of senior claims on the company’s assets.
Analysts point to the rising “Amplification” ratio—debt plus preferred capital divided by Bitcoin reserves—which has climbed to 33%. At the top of Strategy’s capital stack sit roughly $8.25 billion in convertible notes. Below that are preferred stock series like STRC, STRK, STRD, and STRF, with a combined notional value of about $10.3 billion. The common MSTR equity, which bears all ultimate profits and losses, sits at the bottom.
Trading activity underscores this shift in weight. On a recent Friday, STRC shares worth $526 million changed hands, roughly double the average volume. In contrast, MSTR stock traded $1.7 billion, notably below its 30-day average of $2.5 billion.
Should investors sell immediately? Or is it worth buying Strategy?
Despite the massive buying spree, Strategy’s portfolio shows a significant paper loss. The cumulative cost basis for its 780,897 Bitcoin is $59.02 billion, or $75,577 per coin. With Bitcoin trading below this level, the company reported an unrealized loss of $14.46 billion on its holdings for Q1 2026, partially offset by a $2.42 billion deferred tax asset. The portfolio was valued at $51.65 billion as of March 31.
The company’s dominance in the corporate Bitcoin space is staggering. Of the 47,435 BTC that flowed into corporate treasuries in March 2026, approximately 44,377 came from Strategy alone. Bitcoin now constitutes more than 90% of Strategy’s assets, making its stock exceptionally sensitive to the cryptocurrency’s price movements.
Co-founder Michael Saylor has framed the model’s sustainability around a modest Bitcoin performance hurdle, suggesting the coin needs to appreciate only about 2.05% annually for STRC dividends to be serviced without issuing new MSTR shares. Analyst sentiment remains cautiously optimistic but is adjusting to new realities. TD Cowen recently lowered its price target for Strategy by 20% to $350, citing weaker Bitcoin assumptions and revised expectations for future gains. The consensus among 14 analysts remains a “Strong Buy,” with an average 12-month target of $342.
Strategy retains a massive war chest for future purchases, with $21.64 billion available under its STRC program and a further $27.09 billion under its common stock program. Both programs were increased to $21 billion each at the end of March. The MSTR stock currently trades around 115 euros, a steep 71% decline from its 52-week high of 391.80 euros reached in July 2025. The pace at which the Amplification ratio climbs next depends directly on the volume of the upcoming STRC issuance—a decision that likely won’t be long in coming.
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