Strategy Builds Biggest BTC Stack in Five Months — Why MSTR Still Falters

Bitcoin just received one of its strongest endorsements of late, as Strategy Inc. added more than ten thousand BTC to its treasury in a single week. 

The company’s bold accumulation has long been a market-moving signal, a reminder of its conviction that Bitcoin remains the world’s premier digital asset. 

Yet even as Strategy expands its holdings at a historic pace, its stock appears disconnected from the excitement. 

MSTR sits near multi-month lows, raising a pressing question: why is a company stacking Bitcoin at record levels unable to translate that confidence into share-price momentum?

Strategy’s Biggest Bitcoin Buy in Five Months — The Numbers

In the first week of December 2025, Strategy acquired 10,624 Bitcoin, spending approximately 962.7 million dollars at an average price of about 90,600 dollars per coin. 

The latest purchase was the company’s largest since mid-year and brought its total holdings to roughly 660,624 BTC. 

Based on long-term accounting, the company’s aggregate cost is estimated at around 49.35 billion dollars, giving it an average cost basis of about 74,700 dollars per coin.

Strategy funded the acquisition using its at-the-market share issuance program, selling more than five million shares of common stock along with additional preferred stock. The capital raised went directly into expanding its Bitcoin treasury. 

After this latest accumulation, the company now controls more than three percent of the entire Bitcoin supply, a staggering amount even by institutional standards.

Despite the sheer size of the purchase, market reaction outside the Bitcoin community has been muted. The numbers may speak loudly, but they tell only part of the story behind the subdued performance of MSTR.

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Why MSTR Stock Still Struggles — Dilution, Premium Compression, and Value Per Share

MSTR has fallen dramatically from its highs earlier in the year, declining by roughly half despite Strategy’s progressively larger Bitcoin holdings. Much of this pressure comes from dilution. To finance its Bitcoin acquisitions, the company repeatedly issues new equity. 

Every fresh share reduces the ownership percentage of existing shareholders, making each individual unit less valuable even as the company itself grows its Bitcoin stack.

Another structural issue is the collapse of the once-significant premium investors were willing to pay for indirect Bitcoin exposure. For years, many treated MSTR as a leveraged Bitcoin vehicle, willing to buy the stock at a price well above the value of the coins held on its balance sheet. 

That premium has shrunk dramatically. With the value gap narrowing, investors no longer see MSTR as a superior alternative to simply buying Bitcoin directly.

The erosion of both premium and shareholder value per share explains why even the largest Bitcoin purchase in months is not enough to provide relief for the stock.

The Market Has More Choices Now — ETFs and Evolving Institutional Behavior

The investment environment of 2025 is not the same landscape that made Strategy a standout proxy for Bitcoin. 

A wide range of regulated Bitcoin ETFs, trust conversions, and institutional custodial products now offer simpler, cheaper, and more transparent exposure to BTC. As a result, the reasons investors once favored MSTR are less compelling today.

Rather than relying on a corporate balance sheet loaded with debt and equity financing, institutions now prefer cleaner vehicles with lower structural risk. 

This shift has reduced demand for stocks that indirectly track Bitcoin through leveraged operational strategies. While Strategy continues to present itself as a pioneering Bitcoin treasury company, investor appetite has simply moved elsewhere.

Macro conditions reinforce this trend. With tighter financial conditions, elevated borrowing costs, and greater regulatory scrutiny of leveraged corporate structures, volatility-intensive Bitcoin-linked equities have lost appeal among more cautious investors.

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Structural Risks — Debt, Leverage, and a Business Model Tied to One Asset

Strategy’s transformation from a software business into a quasi-Bitcoin holding company brings inherent vulnerabilities. The firm’s long-term obligations, including debt and preferred share dividends, are tied to a balance sheet dominated by a single volatile asset. 

When Bitcoin rises, this strategy can unlock significant leverage. But when Bitcoin falls, the company’s financial commitments can become far more burdensome.

This leverage dynamic has become a central concern for analysts. The company’s ability to handle downside volatility is often questioned, and this perception weighs heavily on its stock. 

Many market participants now treat MSTR not as a stable investment but as a high-risk speculative instrument whose fortunes hinge entirely on the direction of Bitcoin.

These structural risks explain why even dramatic accumulation events no longer guarantee a favorable response from shareholders.

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What This Means for Bitcoin and the Broader Institutional Buying Trend

Strategy’s decision to accumulate more than ten thousand BTC in a single week reaffirms that high-conviction institutional buying is alive. Such massive purchases strengthen the narrative that major corporate actors continue to treat Bitcoin as a strategic reserve asset rather than a passing trend.

However, the market’s reaction to MSTR highlights an important shift. The presence of more accessible Bitcoin investment options means companies that use aggressive balance-sheet strategies no longer dictate investor sentiment the way they once did. 

Strategy may continue building its treasury, but the broader market is signaling that accumulation alone is not enough to sustain long-term equity value.

In essence, the company’s stacking pace demonstrates conviction, but conviction does not automatically translate into shareholder returns.

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Conclusion

Strategy’s latest Bitcoin purchase is impressive by any measure. Adding 10,624 BTC in a week and bringing its total holdings past 660,000 BTC underscores a level of commitment unmatched by any other publicly listed company. 

Yet MSTR continues to falter. Dilution pressures, narrowing valuation premiums, greater availability of Bitcoin ETFs, and structural balance-sheet risks have all contributed to the disconnect.

The company may be building one of the largest Bitcoin treasuries in the world, but shareholders are becoming increasingly aware that holding more coins is not the same as creating more value per share. 

Strategy’s bold accumulation strategy remains intact, but its stock performance reflects a market that is far more demanding than in previous cycles.

FAQ

Why did Strategy buy more Bitcoin even though its stock price is down?

The company remains committed to a long-term Bitcoin strategy. It raises capital through new equity and preferred share issuances, then channels the proceeds into additional Bitcoin purchases. The goal is long-term accumulation rather than short-term stock performance.

Does buying more Bitcoin increase the value of each MSTR share?

Not always. Because Strategy funds its purchases by issuing new shares, existing shareholders are diluted. The overall company holds more Bitcoin, but each individual share may represent a smaller portion of that total.

Why have investors stopped treating MSTR like a Bitcoin ETF?

Regulated Bitcoin ETFs provide direct exposure without the complications of dilution, corporate leverage, or operational risks. As these vehicles gain popularity, the unique appeal of MSTR decreases.

Could MSTR recover if Bitcoin enters a strong rally?

It is possible. A major increase in Bitcoin’s price could expand the value of Strategy’s holdings. However, for a sustained stock recovery, the company would also need to address dilution and maintain a premium over its Bitcoin holdings.

What does this mean for institutional Bitcoin adoption?

Strategy’s purchase shows that large-scale accumulation continues at the corporate level. However, the market’s muted response indicates that investors now prefer simpler and more transparent exposure methods. This reflects a broader shift in how institutions approach Bitcoin.