Strategy’s Bitcoin Acquisition Pursuit Despite Losses
Strategy, a Bitcoin treasury firm valued at $64 billion and directed by Michael Saylor, aims to accumulate as many Bitcoins as possible in a short time. Currently, Bitcoin’s value is significantly less than its peak of $125,000 from last October, and the company has recorded losses exceeding $12 billion for the second quarter in a row. Nonetheless, Strategy is actively exploring new funding avenues to keep purchasing Bitcoin through 2026.
In the financial report for the first quarter of 2026, Strategy announced a net loss of $12.54 billion, following a loss of $17.44 billion in the final quarter of 2025. Most of these figures stem from unrealized losses due to falling Bitcoin prices. Interestingly, the company has never sold the Bitcoins it has obtained but seems increasingly open to the idea of doing so eventually. Currently, Strategy holds 818,334 Bitcoins, about 3.9% of the total supply, valued at around $64.14 billion with Bitcoin’s price hovering around $78,000.
Even with these significant unrealized losses, the company, which pioneered the corporate model for Bitcoin finance, pointed out the performance of its digital credit instrument, Stretch (STRC), during its earnings call. This preferred stock, which has attracted $5.58 billion in investments this year and over $8 billion since its launch nine months ago, allows investors to buy shares, with the proceeds funneled into Bitcoin purchases. Holders enjoy variable interest dividends, underpinned by the company’s Bitcoin reserves, which are expected to grow substantially over time.
In simpler terms, Strategy is banking on the idea that crypto asset prices will appreciate by more than 11% annually. To facilitate this, they are borrowing money at that same rate to purchase Bitcoin. However, it’s worth noting that borrowing costs were significantly lower under previous financing arrangements.
“Strategy is the leading issuer of digital credit globally, supported by a robust Bitcoin balance sheet,” Andrew Kang, the CFO, stated. “Our consistency in dividend payments continues, with 23 consecutive distributions totaling over $693 million since the launch of our preferred stock product in early 2025.”
Although grappling with unrealized losses, Strategy prioritizes increasing its Bitcoin holdings per share instead of chasing short-term profits. The firm tracks its progress through metrics like BTC yield, which reached 9.4% in the first four months of 2026, adding about 63,410 Bitcoins to its treasury in that time. Management believes Bitcoin will enhance its status as a global non-political reserve asset, thus appreciating over time.
However, not everyone agrees with the current strategy. Critics, including veteran gold advocate and Bitcoin skeptic Peter Schiff, have labeled it a pyramid scheme. Schiff has gone so far as to describe Strategy’s STRC as “the most obvious Ponzi scheme,” asserting that transparency in actions doesn’t necessarily negate the potential for a pyramid scheme to exist.
Some have drawn parallels with investment trusts popular during the 1920s stock market boom, which used significant leverage to invest in emerging companies and ultimately contributed to the market’s 1929 crash. This comparison has arisen in light of Andrew Ross Sorkin’s recent book about the events preceding that collapse, though Sorkin himself refrains from suggesting that Strategy is destined for a similar fate.
Whether this model can withstand the next crypto cycle or will ultimately collapse like a Ponzi scheme remains uncertain. For the moment, though, investors continue to provide the necessary capital, enabling Strategy to expand its Bitcoin holdings.
