The spotlight has returned to Strategy this week, driven not by its core software operations but by its aggressive Bitcoin purchasing program and a shifting political landscape in Washington. While institutional investors appear to be warming to the stock, a critical question persists: how sustainable is this model for a company that continues to rely on raising fresh capital?
The Funding Engine: Equity, Debt, and Digital Assets
Strategy’s “Bitcoin machine” remains in high gear. The company recently placed additional shares of its perpetual preferred stock, known as “Stretch” (ticker: STRC), using the proceeds to acquire approximately 1,000 Bitcoin. According to sources, this marked the largest single-day accumulation since the instrument began trading in July 2025. Combined with purchases from the prior day, the two-day total reached roughly 1,762 Bitcoin.
This activity is part of a much larger pattern. Between February 23 and March 1, the firm purchased an additional 3,015 Bitcoin for about $204.1 million, at an average price of nearly $67,700 per coin. This brought its total holdings to 720,737 Bitcoin, which an article notes represents over 3.4% of the fixed total supply of 21 million. Since 2020, the company’s cumulative investment in this reserve stands at approximately $54.77 billion, with an average acquisition cost of around $75,985 per Bitcoin.
This spending is financed through a capital structure outlined in the “21/21 Plan” launched in late 2024, which targets $42 billion raised equally through equity and fixed-income instruments. A recent 8-K filing for the period covering February 23 to March 1 detailed, among other transactions, the net sale of 71,590 STRC shares for about $7.1 million and the issuance of 1,730,563 Class-A shares raising roughly $229.9 million.
Political Tailwinds from Washington
A key driver behind the recent positive sentiment is U.S. policy. President Donald Trump recently urged American banks to cease “threatening” the Genius Act and instead seek a deal with the crypto industry. This stance is complemented by his support for the Clarity Act, designed to resolve jurisdictional disputes between the SEC and the CFTC.
For Strategy, this is more than just headlines. A clearer regulatory framework could encourage more banks to act as custodians, thereby easing entry into the crypto market for large investor groups like pension funds. As the largest corporate holder of Bitcoin, the company would likely benefit from a more welcoming environment.
Should investors sell immediately? Or is it worth buying Strategy?
Appealing to Investors: Dividends and Index Inclusion
To maintain the attractiveness of its STRC preferred shares, Strategy increased the annual dividend rate from 11.25% to 11.50% effective March 1. This marks the seventh consecutive hike since July 2025, underscoring the instrument’s centrality to the company’s financing strategy: it provides access to capital at a cost that must satisfy income-focused buyers.
Another stabilizing factor emerged in January when MSCI, following an intensive review, decided to retain Strategy in its major indices. This move reportedly averted an estimated $2 billion in potential forced selling by passive funds. Furthermore, major asset managers, including Amundi, have significantly increased their positions recently—by over 370%, according to the text.
On the operational front, the quarter ending December 2025 offered a degree of normality. Revenue reached $122.99 million, slightly exceeding expectations and the prior year’s figure. However, new fair-value accounting rules dramatically distorted the bottom line, resulting in a reported net loss of $12.4 billion for Q4 2025, driven by unrealized fluctuations in the value of digital assets.
The market has reflected the recent upbeat momentum, at least in the short term, with the stock gaining roughly 10% over the past seven trading days.
Ultimately, Strategy continues to function primarily as a leveraged proxy for Bitcoin sentiment. Its recurring purchase announcements are increasingly viewed as routine updates, while the direction and volatility of Bitcoin set the tone. As 2026 approaches, structural questions come into sharper focus: How long can this “digital treasury” model remain viable if growth is consistently financed through issuing new equity and preferred shares?
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