Strategy Buys $1B in Bitcoin Without Touching Common Equity

The $1B Buy

Strategy's latest 8-K filing shows 13,927 BTC purchased between April 6 and April 12 at an average price of $71,902 per coin — roughly $1 billion in total. The entire buy was funded through sales of 10,028,363 shares of STRC preferred stock for net proceeds of $1.0013 billion.

Notably, zero common MSTR shares were sold last week. Strategy still has $27.1 billion available under its MSTR ATM program and $21.6 billion remaining under STRC — nearly $49 billion in total dry powder. This is the fifth billion-dollar-plus Bitcoin purchase of 2026, and it's only mid-April.

Combined with the 4,871 BTC purchased for $329.9 million in the first five days of April, Strategy has added 18,798 BTC for roughly $1.33 billion in the first 12 days of the month alone.

Underwater but Still Buying

Strategy's total stash now sits at 780,897 BTC acquired for $59.02 billion at an average cost of $75,577 per coin. With Bitcoin trading around $71,000, the entire treasury is underwater by roughly $3.6 billion on paper. Q1 2026 alone produced a $14.46 billion unrealized loss as Bitcoin posted its worst first quarter in 16 years, falling 22.6%.

But the buying hasn't slowed. Strategy accounted for 44,377 of 47,435 BTC added to corporate treasuries in March — roughly 94% of all corporate Bitcoin accumulation that month. The company is 219,103 BTC short of Saylor's stated goal of 1 million Bitcoin by end of 2026, which would require roughly $15.6 billion more at current prices across the remaining eight months.

TD Cowen cut its price target 20% to $350, citing weaker Bitcoin assumptions — but that target still implies over 2.5x upside from current levels.

Saylor's 2.05% Argument

Michael Saylor's post-announcement framing centered on a single number: 2.05%. That's Strategy's "BTC Breakeven ARR" — the annual rate Bitcoin needs to appreciate to cover all preferred stock dividends and interest expense indefinitely, without issuing any new common shares.

Two months ago that figure was around 1.5%. The jump to 2.05% reflects the growing STRC dividend burden, now exceeding $1 billion annually at the current 11.5% rate. Saylor is arguing this is trivial — Bitcoin's historical CAGR dwarfs 2% — and that the STRC engine creates a self-sustaining cycle where BTC appreciation funds the dividends that fund more BTC.

The counterargument is straightforward: the breakeven only holds if BTC cooperates. At $71,000, Strategy's BTC Yield sits at 5.6% year-to-date, but the company's own filings show $14.46 billion in Q1 unrealized losses. The STRC engine works when Bitcoin goes up. When it doesn't, the dividend obligations become deadweight on a shrinking treasury.

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