How Strategy used half its stock price to buy 225,000 Bitcoin in 2025

In 2025, Strategy (formerly MicroStrategy) purchased 225,027 Bitcoin, acquiring more than the entire global mining output for the year, bringing its total holdings to nearly 672,497 BTC. Despite this massive accumulation, which created a supply shock, the company's stock price plummeted 52% by year-end, resulting in its market capitalization ($48.3 billion) being significantly less than the market value of its Bitcoin holdings ($59.2 billion).

This divergence is attributed to the unwinding of the 'MSTR arbitrage' trade, where investors previously treated the stock as a leveraged volatility instrument. As Strategy heavily diluted its equity to fund purchases, the premium to Net Asset Value (NAV) collapsed. Sophisticated players began shorting the stock against long spot Bitcoin ETFs. Furthermore, simple retail analysis ignoring debt is misleading; when factoring in billions in convertible notes, the Enterprise Value ($62.3 billion) is slightly higher than the BTC stack value, eliminating the perceived discount.

The market is now focused on dilution rather than the 'BTC Yield' KPI promoted by management. Since the stock price fell, Strategy must issue more shares to raise the same capital, eroding BTC per share. Management remains committed to accumulation, holding over $2 billion in cash and showing no intent to sell Bitcoin or buy back shares, meaning the 2026 outlook hinges on Bitcoin's price action to either squeeze shorts or continue validating dilution concerns.

(Source：CryptoSlate)