Author: Blockworks
Compiled by: TechFlow TechFlow
TechFlow Dive: 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 stock issuance in 2026, the Bitcoin content per share is being diluted. This article analyzes the actual impact of this structural change on the price of BTC—notably, its buying will shift from continuous to intermittent.
Strategy has once again become a visible treasury buyer in the Bitcoin market, but the funding context is vastly different compared to 2024-2025.
In late December of last year, Strategy completed a funding round, but hardly deployed the funds into Bitcoin. From December 29th to 31st, the company sold 1,255,911 shares of MSTR, raising a net $195.9 million, but only bought 3 Bitcoins. Deployment only restarted in January: from January 1st to 4th, 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 Bitcoin, spending $116 million, bringing its total holdings to 673,783 Bitcoins.
A more crucial signal lies in the change in financing structure. From 2024 to early 2025, Strategy raised funds at low cost through convertible bonds—with cash coupons ranging from only 0.625% to 2.25%—and subsequently issued multiple zero-coupon convertible bonds. This strategy worked best when MSTR traded at a premium to Bitcoin's NAV (mNAV > 1), because the equity option value itself was attractive.
Looking at a longer timeframe, marginal buying in 2025 was essentially driven by two forces: spot ETFs and Strategy. The cumulative increase in holdings shows that Strategy's inflows were on par with ETFs for a considerable period throughout the year, meaning its influence on prices was comparable to that of the ETF group at certain stages.
Conditions in 2026 are significantly weaker. With mNAV narrowing and financing methods shifting towards double-digit cost preferred stock and dilutive ATM common stock issuances, it will be difficult for Strategy to continue large-scale buying without worsening the Bitcoin content per share. Strategy will remain a bellwether for market sentiment, but its buying pressure will be more moderate and intermittent. ETF fund flows and overall crypto market risk appetite will become more reliable price-determining forces.
