February 2, 2026
Finance

Strategy Inc. Expands Bitcoin Holdings Amid Price Decline as Market Skepticism Grows

Despite adding 855 BTC funded by substantial share sales, concerns linger over company's capital reserves and Bitcoin's volatile price dynamics

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Summary

Strategy Inc. has recently increased its Bitcoin portfolio by acquiring an additional 855 BTC at an average price near $88,000 per coin. This move, funded through the sale of over 673,000 shares, occurs amid a marked drop in Bitcoin prices to below $75,000, provoking questions around the resilience of the company's investment strategy and the cryptocurrency's short-term reliability. Industry observers highlight critical price thresholds for Bitcoin and underscore technical challenges facing Strategy's stock, reflecting broader market uncertainties.

Key Points

Strategy Inc. acquired 855 Bitcoin units between January 26 and February 1, at an average cost of $87,974 per coin, financing the purchase by selling over 673,000 Class A shares.
Bitcoin’s price fell below $75,000 shortly after the acquisition, causing the new holdings to drop below purchase price immediately.
The company currently holds 713,502 bitcoins at an average cost of $76,052 per coin, with Bitcoin trading near $77,000, leaving the overall portfolio just above break-even after more than five years of accumulation.
Financial commentator Jim Cramer raised concerns about Bitcoin’s recent price decline, the ability of investors like Michael Saylor to support the market, and Bitcoin’s volatility limiting its effectiveness as a short-term currency.

Strategy Inc. undertook a significant Bitcoin purchase last week, adding 855 bitcoins to its holdings at an average cost of $87,974 per coin. The acquisition was executed over several days between January 26 and February 1. To finance this $75.3 million transaction, the company sold 673,527 Class A shares, generating net proceeds amounting to roughly $106.1 million.

This fresh Bitcoin purchase, however, immediately faced headwinds as the cryptocurrency’s price plummeted below $75,000 over the ensuing weekend. Consequently, these latest acquisitions entered the market at a loss almost immediately due to the rapid decline. Strategy Inc.'s cumulative Bitcoin portfolio now consists of 713,502 bitcoins purchased at an average price of $76,052 each, representing a total investment of $54.26 billion.

With Bitcoin's market price currently hovering near $77,000, Strategy Inc.'s overall Bitcoin assets stand just marginally above breakeven. This data reflects more than five years of gradual accumulation at varying price points.

Amid these developments, prominent financial commentator Jim Cramer expressed concerns during recent market commentary. He drew attention to Bitcoin's decline to approximately $74,000—the lowest level observed since April 2025—and questioned the presence and capacity of Bitcoin advocates to support the market at crucial technical junctures.

Cramer repeatedly spotlighted Strategy executive chairman Michael Saylor, a noted Bitcoin proponent, pondering whether Saylor retains sufficient capital resources (“dry powder”) to counteract intensified sell-offs. He identified $73,000 as a critical support level for Bitcoin, emphasizing that recovery above $77,000 is essential for establishing a foundation for potential future appreciation.

Despite these calls, Cramer remained skeptical regarding the effectiveness of interventions by Bitcoin's usual defenders to prevent further downward pressure. He framed the recent price volatility as a reminder of Bitcoin's inherent instability and its limitations when considered as a short-term currency form. Cramer noted his personal holdings in Bitcoin, yet underscored the risks associated with holding such a volatile asset even in the short term.

Regarding Strategy Inc.'s stock performance, the share price recently broke below a previously sustained consolidation range between $145 and $165. Presently, the stock is testing significant support zones near $138 to $146.

Technically, the stock is trading approximately 45% beneath its 200-day moving average, signaling an extremely bearish momentum. All four exponential moving averages (EMAs) also lie above current prices, with the 20-day EMA at $161.27, 50-day EMA at $180.92, 100-day EMA at $221.04, and 200-day EMA at $259.04. This substantial gap manifests persistent downward pressure on the share price.

If the critical support level between $138 and $146 fails, the next anticipated support bands appear near $120 to $125, and subsequently at the psychological threshold of $100.


These market movements highlight ongoing challenges for Strategy Inc. as it navigates a turbulent Bitcoin landscape, balancing large-scale crypto accumulation financed through equity sales against a backdrop of volatile cryptocurrency prices and technical pressures on its stock.

Risks
  • The recent Bitcoin purchase entered the market at a loss due to rapid price declines, reflecting the cryptocurrency’s high volatility and price uncertainty.
  • Strategy Inc.’s stock is experiencing downward momentum, trading significantly below key moving averages and critical support levels, indicating potential further declines.
  • There is uncertainty whether Michael Saylor or other Bitcoin proponents have sufficient capital reserves to effectively defend the asset’s price against further sell-offs.
  • Bitcoin’s failure to regain key price levels, such as $77,000, could undermine investor confidence and impede the potential for price recovery.
Disclosure
Education only / not financial advice
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