NEW YORK, Feb 3, 2026, 14:33 (EST)
- In the week ending Feb. 1, the strategy offloaded 673,527 shares, generating $106.1 million, while it added 855 bitcoin to its holdings.
- The company raised the dividend on its STRC preferred shares to 11.25% and announced a cash payout for February
- Crypto-related stocks have fallen behind the broader market, hit hard by bitcoin’s slump that’s tightening the squeeze on leveraged proxies
Strategy shares fell this week as bitcoin approached a price that puts the company’s massive holdings just shy of break-even. This drop sparked fresh questions about how much further the company can continue buying.
The selloff is significant because Strategy acts as a stock-market stand-in for bitcoin, often showing bigger swings than the cryptocurrency itself. CoinDesk reported the stock has dropped for seven months running and currently trades at an mNAV multiple near 1.09 — a quick way to compare its equity value against the worth of its bitcoin holdings. When that multiple nears 1, it becomes tougher and more dilutive to raise new equity. (CoinDesk)
A filing with the U.S. Securities and Exchange Commission dated Feb. 2 revealed Strategy sold 673,527 Class A shares via an at-the-market program, generating net proceeds of $106.1 million. The company put $75.3 million of that toward buying 855 bitcoin, raising its total holdings to 713,502 coins at an average price of $76,052 each. Strategy also boosted the annual dividend rate on its variable-rate STRC preferred shares to 11.25% and declared a $0.9375 per-share dividend for February, payable Feb. 28 to shareholders of record on Feb. 15. It expects to treat the dividend as a return of capital, which usually lowers the investor’s tax cost basis. (SEC)
Crypto-exposed stocks took a hit despite gains in the broader market Monday. Strategy tumbled 6.7%, Coinbase lost 3.5%, and Robinhood plunged 9.6%, according to The Wall Street Journal. (The Wall Street Journal)
Bitcoin’s plunge has pushed traders to the exit. According to CoinGlass data, $2.56 billion in bitcoin positions were liquidated recently after the token fell below $80,000 amid broader risk asset sell-offs. Kaiko analyst Adam McCarthy said investors are now “reassessing their risk frameworks.” Bitfinex analysts highlighted thin liquidity over the weekend. Jim Ferraioli pointed to “outside forces” at play, while Trade Nation’s David Morrison noted investors were “looking for an excuse to lighten up” amid concerns over the AI trade, Microsoft’s earnings, and Donald Trump’s choice of Kevin Warsh as Fed chair nominee. (Reuters)
Strategy boils down to a simple equation for the company. It sells stock when demand spikes, then funnels that cash into bitcoin—amplifying both upside and downside for shareholders.
The recent drop has reignited concerns over bitcoin’s path if weakness persists. John Blank, chief strategist at Zacks Investment Research, told CNBC on Monday that bitcoin might dip to $40,000 within six to eight months. He noted that a typical crypto winter can last anywhere from “12 to 18 months.” Blank also pointed out the danger of large holders being forced to sell. Phong Le, CEO of Strategy, has previously said selling bitcoin would only happen as a “last resort” if the stock-to-bitcoin ratio falls below one. (Business Insider)
Preferred payouts could attract more investors, but they come with a cash drain that won’t vanish even if markets do. With a narrower equity premium, there’s less wiggle room to finance acquisitions cheaply.
Until the token steadies or the company eases up on its purchases, traders will probably continue viewing MSTR as a leveraged bet on bitcoin.
