Strategy Inc. (MSTR) expanded its bitcoin holdings in early April, purchasing 4,871 BTC for approximately $329.9 million as the firm continues to double down on its balance-sheet strategy despite significant unrealized losses. The purchases were made between April 1 and April 5 at an average price of $67,718 per bitcoin. The latest accumulation brings Strategy’s total holdings to 766,970 BTC, acquired for roughly $58.02 billion at an average cost basis of $75,644 per coin. At recent prices near $69,500, the firm remains underwater on its aggregate position, reflecting the continued gap between market value and acquisition cost.
Funding Details and STRC Mechanism
To fund the purchases, MSTR tapped its at-the-market (ATM) equity programs. The company raised approximately $227.3 million through sales of its variable-rate Series A perpetual Stretch preferred stock (STRC) in late March, followed by an additional $102.6 million in early April. It also generated $72 million from the sale of Class A common shares during the same period.
STRC is a Variable Rate Series A perpetual preferred stock issued by Strategy that is designed to trade near a $100 par value while paying a high, adjustable monthly dividend. It functions as a bridge between traditional income-focused investors and the company’s Bitcoin-heavy balance sheet by translating Bitcoin exposure into a more stable, yield-oriented instrument. In practice, STRC enables Strategy to raise capital from fixed-income markets and channel it into acquiring more Bitcoin.
Unrealized Losses and Financial Impact
For the first quarter ended March 31, 2026, Strategy reported a $14.46 billion unrealized loss on its digital asset holdings. The loss was partially offset by a $2.42 billion deferred tax benefit. The company recorded a carrying value of $51.65 billion for its bitcoin portfolio, indicating that fair value remains below cost. Management noted that additional valuation allowances on deferred tax assets related to its software business may be required, highlighting the broader financial impact of bitcoin price volatility on its balance sheet.
Despite the losses, Strategy has maintained its aggressive accumulation strategy, continuing to position Bitcoin as its primary treasury reserve asset. The company’s approach has drawn both strong support and criticism, as investors weigh the upside potential of bitcoin exposure against the risks tied to leverage and market swings. Last week, the company announced no bitcoin purchases. Shares of MSTR rose 3.9% in premarket trading following the disclosure.
Analyst Views and Market Outlook
Last week, Bernstein analysts said that Bitcoin had likely bottomed and reiterated a $150,000 year-end price target, citing strong ETF inflows and growing corporate demand. The firm highlighted Strategy’s massive holdings—about 3.6% of total supply—as a key signal of institutional conviction, with continued buying supported by billions raised in 2026. Strategy has also expanded its capital-raising capacity through major Wall Street partners, enabling up to tens of billions in additional stock and preferred share offerings.