Micro strategy eyes a new phase of Bitcoin with another purchase
Strategy Inc. (formerly MicroStrategy) has indicated that it is preparing to make a purchase of bitcoins that will cover the massive $1.25 billion purchase completed last week.
On January 18, Michael Saylor posted a graphic on his social media platform X captioned “The Big Orange”. Market analysts interpreted the phrase as a sign to surpass the company's recent purchase of 13,627 bitcoins.
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Strategy signals record the purchase of Bitcoin in a falling stock premium
That earlier share had already cemented the company's position as the property's largest corporate owner.
However, buying more than that amount will push the strategy's total holdings past the 700,000 Bitcoin limit.
This chapter puts the company's treasury in the rarefied air, including BlackRock's IBIT exchange-traded fund and Satoshi Nakamoto, the founder of the network Anonymous, who is worth an estimated 1.2 million BTC.
The move comes at a critical time for the enterprise software company.
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The strategy's stock has declined more than 50% over the past year, and its critical market-to-net-asset-value (MNAV) premium has fallen to about 1.0x.
This premium squeeze has historically used Saylor's arbitrage model to fund purchases.
With institutional capital flooding into the space that offers exposure without the complexity or premium associated with strategic shares, Bitcoin ETFs — the firm has lost the simple advantage it once enjoyed.
Against this background, to sustain the pace of accumulation, strategy has led to aggressive funding mechanisms.
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Last year alone, the company raised $25 billion through the sale of common stock and the issuance of new preferred stock, including STRC.
Meanwhile, Wall Street reacted cautiously to this solution. TD Cowen lowered its price target on the stock to $440 from $500, maintaining a buy rating.
The firm cited a decline in its “Bitcoin Yield” for fiscal year 2026, a measure of ownership's exposure to Bitcoin per share. Analysts have pointed out that the company's heavy reliance on raising equity for acquisitions is actively eroding this yield for shareholders.
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Despite the skepticism, some market observers argue that the strategy has created a structural pattern that traditional finance simply cannot accommodate.
“They knew how to store bitcoin at scale, package it into products and get exposure in ways that traditional banks couldn't easily match,” said bitcoin analyst Shagun Makin.
Mackin pointed out that the company's front-loading controller and market pressures are a response to the model's effectiveness rather than the model's flaws.
“Banks can't replicate the model without compromising their own balance sheets. So the only real options are to freeze it, discredit it or put controls around it,” he said.
