Strategy Buys 2,486 Bitcoin But MSTR Dives Another 3%

Strategy (NASDAQ:MSTR) bought 2,486 Bitcoin (CRYPTO: BTC) for $168.4 million between February 9 and February 16 at an average price of $67,710.

The Latest Purchase

Strategy funded the buy through two sources: $90.5 million in common stock sales and $78.4 million from STRC preferred stock sales. 

Total holdings now stand at 717,131 BTC acquired for $54.52 billion at a $76,027 average cost basis.

The math is painful. With Bitcoin at $68,000, Strategy sits underwater by roughly $8,000 per coin—a total unrealized loss of approximately $5.7 billion. 

Despite the loss, the company retains substantial capital-raising capacity: $7.88 billion remaining under common stock authorization and $3.54 billion under STRC alone.

The buying continues regardless. Strategy used all ATM proceeds to purchase Bitcoin, maintaining its core strategy of converting equity raises directly into BTC regardless of market conditions.

The Debt Conversion Plan

Saylor revealed Sunday that Strategy plans to convert roughly $6 billion in convertible debt into equity over the next three to six years, aiming to lower leverage while maintaining flexibility around its Bitcoin strategy.

The balance sheet math provides context. With $49 billion in BTC reserves, Bitcoin would need to fall approximately 88% from current levels—to around $8,000—before reserves equal outstanding debt. 

Strategy also confirmed no major debt maturities until 2028 and said it will avoid issuing additional senior convertible notes.

Converting debt to equity reduces pressure but dilutes existing shareholders. Bondholders become shareholders, eliminating debt obligations while spreading ownership across more shares. 

Saylor added the company has 2.5 years of cash to cover dividends and debt without raising additional capital.

MSTR Technical Freefall

MSTR is approaching the Parabolic SAR at $104.79—the only remaining bullish signal and the last line of defense from the $105-$110 capitulation zone.

The nearest resistance is the 20 EMA at $139.86, which rejected price cleanly on the last test. 

Above that, the 50 EMA at $162.57, 100 EMA at $202.95, and 200 EMA at $245.55 form an almost impenetrable wall of overhead resistance.

Moreover, the $155 horizontal support recently broke and now acts as resistance.

The most urgent risk is a daily close below $110. That breaks the Parabolic SAR support and opens the door to $90-$95 with no visible structure in between. 

For any stabilization, MSTR needs to stop making new lows and reclaim the 20 EMA at $139.

Image: Shutterstock