Shares of Strategy Inc (MSTR) declined sharply at the opening bell on Monday, February 9, 2026, falling approximately 7% to $125.29. The drop followed the company's disclosure of a significant new acquisition of Bitcoin, a move financed primarily through the sale of additional equity, reigniting investor concerns over shareholder dilution.
Financing the Purchase with Share Sales
According to a regulatory filing, the enterprise software firm turned Bitcoin treasury vehicle purchased 1,142 Bitcoin over the period from February 2 to February 8, 2026. The total cost for the acquisition was approximately $90 million, resulting in an average purchase price of $78,815 per coin. To fund this purchase, Strategy sold 616,715 of its Class A shares through an at-the-market offering program, generating net proceeds of $89.5 million.
This transaction underscores the company's established capital strategy: leveraging equity markets to continuously expand its cryptocurrency reserves. Following this latest buy, Strategy's total Bitcoin holdings now stand at 714,644 coins. The cumulative cost basis for this massive treasury is $54.35 billion, translating to an average cost of $76,056 per Bitcoin.
The Dilution Trade-Off Returns to Focus
The market's negative reaction highlights the persistent tension in Strategy's business model. While the company successfully adds a hard asset to its balance sheet, each funding round via equity sales dilutes the ownership stake of existing shareholders. Strategy's stock has increasingly been treated by traders as a high-beta proxy for Bitcoin itself, often exhibiting more pronounced price swings than the underlying cryptocurrency during shifts in market risk sentiment. The immediate sell-off suggests investors are currently prioritizing the dilutive effect of the share sale over the potential long-term benefits of a larger Bitcoin hoard.
Executive Chairman Michael Saylor confirmed the transaction on social media platform X. The Tysons Corner, Virginia-based company, formerly known as MicroStrategy, continues to operate its legacy enterprise analytics software division. However, its primary strategic focus and market identity are now firmly centered on its role as a corporate Bitcoin treasury.
In a recent earnings statement dated February 5, 2026, Chief Financial Officer Andrew Kang emphasized the strength of the company's capital structure, stating, "Strategy's capital structure is stronger and more resilient today than ever before." The model, however, carries inherent risks. A sustained downturn in Bitcoin's market price could pressure Strategy's stock significantly, making future capital raises more expensive and further exacerbating dilution concerns for shareholders.
Broader Market Context
The announcement coincided with a pullback in the broader cryptocurrency market. At the time of reporting, Bitcoin's price had declined roughly 3% to approximately $68,900, capping a week of notable volatility that unsettled sentiment across crypto-linked assets.
Market participants are now looking ahead to key macroeconomic data releases for clues on Bitcoin's next directional move. The U.S. January payrolls report, scheduled for release on February 11, followed by the Consumer Price Index (CPI) inflation data for January on February 13, are poised to heavily influence near-term interest rate expectations and overall risk appetite in financial markets. These indicators will be scrutinized for potential ripple effects into the cryptocurrency sector and related equities like Strategy.
The company's filing also noted that it maintains billions of dollars in available capacity for future security issuance across common and several series of preferred stock, indicating its intention and ability to continue this funding strategy for the foreseeable future. For investors, this sets up an ongoing dynamic where growth in the Bitcoin treasury must be continually weighed against the cost of dilution from future capital raises.
