Strategy Inc., a leading publicly traded company with substantial Bitcoin holdings, has proceeded with its acquisition plan by purchasing another 1,229 Bitcoins for a total outlay of $108.8 million. This purchase, averaging $88,568 per Bitcoin, was financed through the company’s offering of Class A common stock as disclosed in a recent Securities and Exchange Commission filing released Monday.
As a result of this transaction, Strategy’s total Bitcoin inventory now stands at 672,497 BTC. The aggregate investment across this vast crypto portfolio amounts to $50.44 billion, reflecting an average purchase price of $74,997 per Bitcoin. This recent buy is part of an ongoing acquisition strategy, which has cumulatively positioned Strategy as the largest publicly listed Bitcoin holder.
Year-to-date figures for 2025 indicate that Strategy has achieved a Bitcoin yield of 23.2%, signaling strong performance within the calendar year. Still, this success has been met with scrutiny by prominent financial commentator Peter Schiff, who offered a sharp assessment of the company’s long-term returns on Bitcoin investments.
"Strategy has been buying Bitcoin consistently over five years," Schiff stated on the social platform X, "given its average acquisition cost of $75,000 per Bitcoin, their current paper gains amount to only 16%, translating to an annualized return just above 3%." He contrasted this modest return against the potential gains from alternative assets, suggesting that the firm could have achieved better results by investing elsewhere during the same timeframe.
Beyond targeting the Bitcoin holdings, Schiff also criticized Strategy’s approach involving preferred stock. Highlighting potential investor risks, he pointed out that dividends on the preferred shares are contingent upon the company’s discretion and are not guaranteed.
"Dividends are not accumulated if unpaid; instead, they are permanently forfeited," he warned, predicting that fund managers may eventually divest from these preferred stocks when it becomes clear that dividends will not materialize. This shift, Schiff asserted, would undermine Strategy’s capacity to raise capital through these instruments.
The stock market has echoed investor concerns, as the market capitalization of Strategy currently hovers around $45 billion—substantially below the approximate $59-60 billion market value of its Bitcoin assets. This disparity stems largely from worries about the firm’s leverage, the dilutive impact of ongoing capital raises, and the recent approximately 30% decline in Bitcoin’s value since mid-October 2024.
Strategy's stock price has tumbled by 50% since October 10, 2024, markedly underperforming Bitcoin’s own price trends. The dramatic fall is illustrated graphically, where shares have dropped from nearly $500 in July to current trading levels near $157, marking a decline exceeding 68%.
Technical indicators underline this bearish momentum. The Supertrend indicator turned negative at $187.86, serving as a resistance level. Similarly, the Stop and Reverse (SAR) indicator at $179.77 confirms the prevailing downtrend. The stock has consistently recorded lower lows with minimal upward correction, signaling a lack of effective buying interest.
All exponential moving averages (EMAs) point downward, with the stock trading beneath each, reinforcing bearish sentiment. Presently, the only potential support is near the recent low of $153.70. For stabilization to be considered, the stock would need to reclaim the $180 to $190 price range. However, such recovery appears unlikely without Bitcoin itself establishing a more sustained price floor.
Institutional and retail investors alike seem to be retreating, exerting further downward pressure on Strategy’s shares as uncertainty about cryptocurrency valuations and the company's capital structure persists.