Bitcoin Treasuries Added $3.5 Billion in January—Almost All By Strategy

Bitcoin-buying firms were viewed arsenic an emerging root of request past year, but they are struggling to support up with marketplace person Strategy arsenic the integer asset’s terms slides.

Last month, the Tysons Corner, Virginia-based steadfast accounted for 93% of Bitcoin purchased among publically traded firms, according to a study from Bitcoin Treasuries. Strategy acquired 40,150 Bitcoin during the play compared to 3,080 Bitcoin among competitors.

In total, integer plus treasuries added astir 43,230 Bitcoin worthy $3.5 cardinal past month. That marked an acceleration from 28,900 Bitcoin successful December, but it was acold little than the 147,000 Bitcoin acquired successful November 2024 amid President Donald Trump’s re-election.

Sentiment surrounding integer plus treasuries has shifted notably implicit the past six months, with a 70% plunge successful Strategy’s banal terms sparking vexation among investors. On Thursday, Strategy’s shares changed hands astir $125, according to Yahoo Finance.

The driblet has intensified scrutiny towards the sustainability of Strategy’s concern model, but the study suggests that the institution is reasserting itself arsenic a person among peers. Excluding Strategy, Bitcoin-buying firms person notched smaller purchases for 4 consecutive months.

Last week, Strategy disclosed a $12.4 cardinal fourth-quarter loss. The company’s holdings showed billions of dollars successful losses connected paper, but Strategy co-founder and Executive Chairman Michael Saylor maintained that Strategy functions arsenic a “digital fortress.”

At immoderate points past year, it appeared that Strategy’s acquisitions were slipping comparative to its peers. In July, for example, Strategy’s competitors purchased 56,000 Bitcoin, portion the institution that wrote the playbook for accumulating Bitcoin bought 31,000 Bitcoin.

Strategy Will Buy Bitcoin 'Forever', Says Michael Saylor—Even With $5 Billion Paper Loss

Still, Strategy’s attack to purchasing Bitcoin is nuanced compared to astir peers. In summation to taking connected debt, the institution has introduced respective types of preferred shares. So far, the company’s adaptable complaint preferred stock (STRC) has seen the astir maturation astatine $3.4 billion.

The merchandise presently pays annualized dividends of 11.25%, saddling Strategy with further costs. However, the institution has stockpiled currency to wage those dividends The study notes that Strive and Metaplanet person besides issued dividend-paying preferred shares.

Last year, analysts warned that Bitcoin-buying firms could go forced sellers of the plus depending connected their firm structure. In June, an expert astatine concern slope Standard Chartered noted that astir had bought Bitcoin for an mean terms of $90,000.