Strategy stock ticked up 1.7% in pre-market trading on Thursday after the company released new data breaking down who actually owns its Bitcoin. The stock is currently trading around $93.95, down over 6% on the day.
The new report shows that of Strategy’s $58 billion Bitcoin pile, $22 billion belongs to lenders. That leaves roughly $36 billion in Bitcoin for regular shareholders — a figure Strategy is now calling its “net reserve.”
Michael Saylor, Strategy’s founder and executive chairman, framed the update simply: “Bitcoin Capital Markets require a new financial language.” His point is that standard accounting tools don’t clearly capture how companies borrow to buy crypto.
Strategy holds 843,775 Bitcoin at an average cost of $75,476 per coin. With Bitcoin currently trading well below that level, the company is sitting on paper losses.
That context matters when you look at what Strategy hasn’t been doing. For four consecutive weeks, the company has made zero Bitcoin purchases. Instead, it has been selling stock to raise capital, pushing its cash reserves up to $3.2 billion.
Fortifying the balance sheet makes sense on paper. Strategy carries real cash obligations — roughly $1.8 billion per year in debt payments and preferred dividend costs. With Bitcoin down nearly 50% from its peak, holding more cash gives the company a buffer if prices keep falling.
The concern is what this pause reveals about the business model. Strategy’s playbook — issue stock and debt, buy Bitcoin, watch the stockpile rise — works best when prices are going up. At lower share prices, issuing stock means more dilution for less capital raised. Buying the dip gets harder, not easier.
That’s the tension investors are now watching.
Strategy’s debt structure amplifies both gains and losses. When Bitcoin rises, MSTR moves faster. When Bitcoin falls, MSTR falls harder. Over the past year, that has meant a 77% drop in MSTR stock compared to a 45% drop in Bitcoin itself.
The new transparency report is designed to help investors see this clearly. Previously, Strategy’s standard filings didn’t separate the $22 billion owed to lenders from the total Bitcoin value, making it appear as though regular shareholders owned the entire pile.
Now they can see the split. Strategy has been clear it plans to keep buying Bitcoin when conditions allow, but lenders remain first in line.
Despite the pressure, Wall Street hasn’t turned on the stock. Of 14 analysts tracked by TipRanks, 13 rate it a Buy and one a Hold. The average 12-month price target sits at $275.46, implying around 181% upside from current levels.
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