While the Bitcoin market continues to fluctuate and most investors choose to wait and see, one company has spent nearly $2 billion to increase its holdings by more than 21,000 Bitcoins in just two weeks. This bold move tells a story of balancing between survival and expansion.
Strategy acquired 10,645 Bitcoins for approximately $980.3 million during the week of December 8 to 14, at an average price of $92,098 per coin. Just the previous week (December 1 to 7), the company had spent about $962.7 million to purchase 10,624 Bitcoins.
1. Contrarian Increase: Aggressive Moves Amid Market Fluctuations
● While most market participants are still hesitating, Strategy has entered its ‘crazy buying mode’. The world's largest corporate Bitcoin holder has accumulated a total of 21,269 Bitcoins in the first two weeks of December, investing nearly $2 billion.
● This increase in holdings has reached a new high since July 2025, even slightly exceeding the purchase volume of the previous week. Strategy's total Bitcoin holdings have reached 671,268, accounting for over 3% of the total Bitcoin supply.
● As of December 15, the total cost of these Bitcoins is approximately $50.33 billion, with an average cost of about $74,972 each. At current prices, this means an approximate book profit of $9.7 billion.
● Bitcoin remains within a structurally fragile range, with the upper boundary being the cost basis of short-term holders ($102,700), and the lower boundary being the real market average ($81,300).
2. Funding strategy: Purchase power supported by stock sales
● The funding for Strategy's large-scale Bitcoin purchases primarily comes from its stock sale program. In the week ending December 14, Strategy sold 4,789,664 shares of MSTR common stock, raising approximately $888.2 million.
● Additionally, the company has raised extra funds by selling preferred shares. According to the company's '42/42' plan, it aims to raise $84 billion for Bitcoin acquisitions by 2027 through equity issuance and convertible notes. This figure has been raised from the initial '21/21' plan ($42 billion) due to depletion on the equity side.
● Strategy's financing plan shows that as of December 15, there remains $12.56 billion worth of MSTR stock available for issuance and sale under this plan. The company's preferred stock plan also has substantial availability: STRK for $20.34 billion and STRD for $4.01 billion.
3. Cash reserves: Strategic buffer under a defensive posture
● While aggressively accumulating Bitcoin, Strategy also took another key financial move in early December—establishing a $1.44 billion cash reserve. This reserve is specifically used to pay preferred stock dividends and debt interest, aiming to ‘decouple’ shareholder returns from Bitcoin price fluctuations.
● The company stated that this cash reserve is sufficient to cover at least 12 months of dividend obligations, and it plans to expand it to 24 months or longer in the future.
● In terms of the overall company valuation, this $1.44 billion cash reserve accounts for about 2.2% of Strategy's enterprise value, 2.8% of its equity, and approximately 2.4% of its Bitcoin asset value.
4. MSCI challenges: The survival battle for index inclusion
● As Strategy busies itself with accumulating Bitcoin, a potential threat is looming. The global index provider MSCI is considering a new regulation that may exclude companies with digital asset holdings exceeding 50% from its main indices.
● For Strategy, which holds the vast majority of its assets in Bitcoin, this proposal poses a direct threat. If implemented, it could force passive funds to sell up to $2.8 billion worth of Strategy stock.
● Strategy has submitted a 12-page letter of opposition to the MSCI stock index committee. The company argues in the letter that excluding companies with digital asset holdings exceeding 50% would lead to these companies ‘constantly entering and exiting’ the main indices due to Bitcoin price fluctuations or differing accounting standards.
MSCI is expected to make a final decision before January 15, earlier than its index rebalancing in February.
5. Market reaction: Weak stock prices and industry malaise
● Despite Strategy's aggressive accumulation of Bitcoin, its stock price has shown weakness. As of December 13, Strategy's common stock overall fell by 3.8% last week and has dropped by 41.2% year-to-date.
● This contrasts with Bitcoin's own performance, where Bitcoin's loss in 2025 so far is only 3.8%. As of December 15, Strategy's market value to net asset value ratio (mNAV) is approximately 0.808, indicating that its stock trading price is below the value of its Bitcoin holdings.
● Strategy is not the only Bitcoin treasury company facing challenges. According to Bitcoin treasury data, there are currently 192 listed companies adopting some form of Bitcoin acquisition model. Many of these companies, including Strategy, have seen their stock prices drop significantly from summer highs, and their market value to net asset value ratios have also contracted sharply.
6. Market background: The dilemmas and opportunities of Bitcoin
● Strategy's accumulation actions occur during a time when the Bitcoin market faces multiple challenges. On-chain analysis shows that the market has failed to reclaim critical thresholds, particularly the cost basis of short-term holders, reflecting the sustained selling pressure from recent high buyers and seasoned holders.
● Realized losses are also on the rise, with realized losses reaching $555 million per day after the 30-day simple moving average adjustment, the highest level since the FTX collapse.
● The US Bitcoin ETF has experienced a quiet week, with an average net inflow of negative over three days. This continues the cooling trend that began in late November, marking a stark difference from the strong inflow mechanisms that supported price increases earlier this year.
7. Financial adjustments: Realistic considerations for lowering expectations
● In response to market changes, Strategy has had to adjust its financial expectations. When the company initially set its 2025 performance guidance, it expected Bitcoin prices to reach $150,000 by the end of the year. Due to the recent drop in Bitcoin prices, Strategy has significantly lowered its financial expectations. The company now assumes that Bitcoin prices will be between $85,000 and $110,000 by the end of 2025.
● Based on this new price range, Strategy has updated several key targets: the Bitcoin return target has been lowered from the previous 30% to 22% to 26%; the target for Bitcoin appreciation against the US dollar has been reduced from the previous expectation of $2 billion to between $840 million and $1.28 billion.
● In terms of revenue, the company expects a loss of approximately $700 million to a profit of about $950 million. This significant volatility reflects the new accounting standards requiring Strategy to value its Bitcoin holdings at market value each quarter.
8. Industry outlook: The future of Bitcoin treasury models
● Strategy's aggressive accumulation actions and financial strategy adjustments reflect the dilemma faced by Bitcoin treasury companies in the current market environment. On one hand, they want to increase Bitcoin reserves through continuous purchases; on the other hand, they must cope with the financial challenges posed by Bitcoin price fluctuations.
● This situation will only occur when the company's stock price falls below net asset value, leading to Strategy losing access to new capital markets. Feng Le stated that this move is purely based on ‘mathematical’ considerations, aimed at protecting shareholder interests.
● The Bitcoin treasury model is facing market repricing. Many digital asset treasury companies have seen their stock prices drop significantly from summer highs, and the market value to net asset value ratios have contracted sharply. As more American companies establish crypto asset treasuries, defining the nature of these companies will become a significant issue for index providers and regulators.
Strategy's Bitcoin reserves have swelled to 670,000, resembling a mountain of gold built from digital codes, quietly flickering on the Nasdaq trading screens.
When Bitcoin prices hover around $90,000, this world's largest publicly traded Bitcoin company completed nearly $2 billion in bets in just two weeks.
Market analysts shake their heads at Glassnode's on-chain data, as ETF funds continue to flow out, and interest in the futures market is lacking, while Strategy's stock appears to be in a forgotten corner, with its market value to net asset value ratio shrinking to 0.85.
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