New Strategy In 2026: Can Its Bitcoin-first Model Hold Up? 2025

As Strategy doubles down on its Bitcoin-first treasury approach, analysts warn that debt, dilution and market volatility could test the model’s resilience heading into 2026.

In early 2025, Michael Saylor’s technology company MicroStrategy officially rebranded to Strategy and adopted a Bitcoin-themed visual marketing program to reflect its core focus as the world’s largest corporate BTC holder.

As of Dec. 30, Strategy has accumulated 672,497 Bitcoin (BTC), valued at nearly $59 billion and acquired at an average price of $74,997 per coin. With Bitcoin trading near $88,000, the company is sitting on an unrealized gain of roughly 17%.

However, despite the paper profits, pressure has been building. Strategy must continue servicing dividends and financing costs tied to the preferred shares and debt used to fund its Bitcoin purchases, creating fixed cash obligations regardless of Bitcoin’s price moves.

Those concerns resurfaced in November when Bitcoin slid to $82,000. To reassure investors about its ability to meet dividend and debt payments, on Dec. 1, Strategy said it established a $1.44 billion cash reserve to cover at least 12 months of preferred dividends and debt interest.

As 2026 approaches, investors are questioning whether the model can withstand deteriorating market conditions.

Strategy first started buying Bitcoin in August 2020, announcing its first purchase of 21,454 BTC for $250 million as a strategic treasury reserve asset. Ever since, the company has evolved into a full-scale capital markets strategy.

Through at-the-market (ATM) equity programs, convertible notes and preferred stock issuances, Strategy has raised capital to acquire Bitcoin without selling its core holdings.

The result is a structure that offers leveraged exposure to Bitcoin while maintaining a legacy software business that still generates operating revenue, though its contribution to valuation has diminished significantly.

Notably, Strategy’s profit swings in 2025 were also heavily influenced by a shift to fair-value accounting for Bitcoin, which requires the company to revalue its BTC holdings each quarter and book unrealized gains or losses in net income. This change has made earnings more volatile, as movements in Bitcoin’s price now flow directly through reported results, even when no Bitcoin is sold.

Source: CoinTelegraph