Bitcoin acquisition companies were once seen as a rising force in demand last year, yet they are now struggling to keep pace with the market leader, Strategy, as Bitcoin’s value declines.
According to a report by Bitcoin Treasuries, the Tysons Corner-based company dominated public firm purchases last month by accounting for 93% of all Bitcoin bought. During this period, Strategy acquired 40,150 Bitcoins compared to just 3,080 Bitcoins purchased by its competitors.
Overall, digital asset treasuries increased their holdings by nearly 43,230 Bitcoins valued at $3.5 billion last month. This was an increase from December’s 28,900 Bitcoins but significantly lower than the record 147,000 Bitcoins bought in November 2024 during President Donald Trump’s re-election campaign.
The sentiment around digital asset treasuries has shifted dramatically over the past six months. Strategy’s stock price plunged by about 70%, causing investor frustration. On Thursday, shares of Strategy traded near $125 according to Yahoo Finance.
This sharp decline has intensified questions about whether Strategy’s business model is sustainable; however, reports indicate that the company is reaffirming its leadership position among peers. Excluding Strategy’s purchases reveals that other Bitcoin-buying firms have been acquiring smaller amounts for four consecutive months.
Last week saw Strategy announce a staggering $12.4 billion loss for Q4 alone. Despite showing billions in paper losses on its holdings, Michael Saylor—Strategy’s co-founder and Executive Chairman—asserted that the company remains a “digital fortress.”
At times throughout last year it seemed like competitors were outbuying Strategy; for instance in July they collectively purchased 56,000 Bitcoins while Strategy acquired only around 31,000.
Nonetheless,Sstrategy employs a more sophisticated approach than most rivals when purchasing Bitcoin: besides leveraging debt financing,the firm introduced multiple types of preferred shares.The variable rate preferred share (STRC) has grown notably so far,to $3.4 billion in value.
This financial instrument pays annual dividends at an impressive rate of11.25%, which adds extra costs forStrategy,butthecompanyhas accumulated sufficient cash reservesto cover these payments.The report also highlightsthat other firms such as Strive and Metaplanet have issued dividend-paying preferred shares too.
Analysts cautionedlastyearthatsomeBitcoin-buyingcompanies might be forced sellers depending on their corporate structures.In June,a Standard Chartered analyst pointed outmost had purchasedBitcoinatan average pricearound$90K per coin.
Last month,fourpubliccompanies opted toreducetheirholdings.Bitcoinminers Riot Platforms and Bitdeer sold1 ,363and490Bitcoins respectively.Omaha-based fintech Exodus Movement offloaded198Bitcoins whileBitcoin Treasury Corp disposedof2BTC tokens .
Saylor declaredthisweekthatStrategy willnotbesoldoutofitsassetsandplans tomaintainitsacquisitions”forever,”despiteits$7billionpaperlosscausedbythedecliningvalueofBitcoin.InDecember,thecompanyestablishedcashreservesforcoveringdebtsanddividendpayments,yetSayloracknowledgedthatthefirmcouldstillsel lBTCifnecessary.
UsersontheMyriadpredictionmarketplatformrunbyDecrypt ’sparentcompany,Dastan,predictanearly25%probabilitythatStrategysells someorallofitsBitcoinduringthisyear.
While Strategyleadspubliclytradedfirmsinbitcoinacquisition,it’ snoteworthythatJanuarywitnessedanincreaseinnumberoffirmsannouncingnewpurchaseplans,risingfrom20inDecemberto30,thisoccurreddespiteadeclineintheoverallimpactoftheirpurchases.