Strategy, the corporate Bitcoin treasury firm led by long-time Bitcoin advocate Michael Saylor, has once again moved aggressively to expand its Bitcoin holdings during recent market weakness. Between December 8 and December 14, 2025, the company spent approximately $980.3 million to acquire 10,645 BTC at an average price near $92,098 per coin, boosting its total Bitcoin reserves to 671,268 BTC — one of the largest corporate accumulations globally.
How Strategy Funds Its Bitcoin Buys
Unlike typical companies that use operating cash flow to make investments, Strategy has built a specialized capital-raising and reserve model to fund large Bitcoin purchases even when prices are falling:
1. Equity Market Taps (“ATM” Programs)
Strategy regularly uses At-The-Market (ATM) equity offerings — a method of selling shares gradually into the open market rather than one lump sum — to raise cash. During the latest buying period, it sold roughly 4.79 million shares of common stock, generating over $888 million in net proceeds, which were then allocated to Bitcoin purchases.
2. Preferred Shares and Other Funding Instruments
In addition to common stock, Strategy also issues preferred stock series as part of its financing mix. These instruments raise capital but carry ongoing dividend obligations, which the company manages by maintaining a dedicated reserve to mitigate pressure during downturns.
3. Reserve Policy to Avoid Forced Selling
To prevent being pressured into selling Bitcoin even in prolonged downturns, Strategy has built a $1.44 billion reserve intended to cover dividend and interest obligations without touching its crypto holdings. This reserve is part of the company’s broader Treasury Reserve Policy, giving confidence to shareholders that Bitcoin accumulation can continue even in tough markets.
The effect of this model is that Strategy doesn’t simply buy Bitcoin when sentiment is strong — it treats market downturns as opportunities to increase exposure. Company filings show that its approach has turned what could be dilution from equity issuance into a structured Bitcoin accumulation engine, thanks to rising Bitcoin-per-share metrics it reports to investors.
Why This Matters
Strategy’s approach makes it a major institutional buyer of Bitcoin, absorbing supply even when prices slip. By continually expanding its balance sheet with BTC denominated assets, the firm has positioned itself as a proxy for institutional Bitcoin demand — setting a model other treasury-centric firms may follow.
Total holdings of over 671,000 BTC represent a meaningful proportion of the cryptocurrency’s fixed supply and underscore growing institutional interest in Bitcoin as a reserve asset rather than just a speculative instrument.
Risks and Sustainability
While the accumulation engine has been effective, it’s not without risks. Dilution from equity sales, dividend obligations on preferred stock, and broader market sentiment can impact how efficiently the company can continue funding purchases. The sustainability of this model depends on whether investor demand for Strategy’s securities remains robust, especially during extended price slumps.
Moreover, the cost of capital and execution risk increases if equity markets become less receptive during downturns. Still, the current reserve policy and mix of financing tools give Strategy a structural edge compared with firms reliant on operating cash flow alone.
In summary:
Strategy’s recent $980M purchase of Bitcoin highlights a well-engineered accumulation engine rooted in public market financing, reserve buffers, and strategic timing. This model not only boosts its total BTC holdings during downturns but also positions the company as a bellwether for institutional Bitcoin demand.
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