Strategy Inc, an American firm specializing in business intelligence and software, continues to be a focal point of scrutiny due to its Bitcoin investments. The recent decline in Bitcoin prices has left the company with substantial losses on its reserves, as their acquisition cost for $BTC is significantly higher—by at least 10%—than the current market value.
No Immediate Alarm Over Strategy’s Bitcoin Investments
The company previously assured stakeholders that it could endure prolonged downturns in Bitcoin prices without facing insolvency risks. A recent analysis by Arkham supported this view while examining Strategy’s overall debt situation.
Arkham highlighted two financial instruments used by Strategy for capital generation: preferred stock and convertible notes. Preferred stock entails dividend payments and potential redemptions, whereas convertible notes include interest payments or coupons.
Importantly, Saylor’s decision to sell common shares for funding Bitcoin acquisitions does not impose future cash liabilities on Strategy. Thus, ‘Saylor’s average purchase price’ becomes less relevant when considering whether he needs to liquidate any of his Bitcoin holdings.
Saylor can afford to remain underwater indefinitely…
— Arkham (@arkham) February 20, 2026
With these obligations tied to coupons, Strategy must either repay or convert these notes into equity upon maturity. Currently, the firm has an outstanding obligation of $8 billion across all convertible notes while maintaining $2.5 billion in cash reserves.
The research from Arkham also suggested that one option available for the company includes converting its convertible notes into MSTR stock. Additionally, under Michael Saylor’s leadership, there exists a possibility of refinancing existing debts. According to Arkham’s insights, discussions about selling off their Bitcoin assets would only arise if they fail to secure further financing.
Future Plans for More $BTC Acquisitions
Critics ranging from Peter Schiff and other gold advocates have consistently challenged Strategy regarding its investment strategies in Bitcoin. Nevertheless, Michael Saylor has reaffirmed his dedication towards holding onto these assets with a clear intention not to sell any $BTC. This commitment comes amidst regular announcements about ongoing purchases of $BTC.
The analysis from Arkham indicates that Saylor remains crucial for determining how the company manages its extensive cryptocurrency portfolio. Presently noted is that utilizing common stock sales as a means of financing additional $BTC purchases does not create future financial burdens on the firm.
This context renders average purchase prices irrelevant concerning whether Saylor or his organization will need to divest any portion of their Bitcoins; under their current financing strategy they can opt to stay underwater indefinitely as long as they fulfill obligations related to their convertible debt instruments.