Strategy’s Billion-Dollar Bitcoin Bet Faces Scrutiny

Strategy, the company formerly known as MicroStrategy, continues to execute its aggressive Bitcoin acquisition plan without deviation. The firm confirmed a massive new purchase over the weekend, spending billions to reinforce its status as the world's largest corporate holder of the cryptocurrency. However, as its reserves climb to new records, Wall Street's skepticism regarding its funding strategy is mounting, leading several analysts to revise their price targets for the company's shares downward.

The primary source of growing criticism centers on Strategy's method of financing these enormous purchases. The company is persistently utilizing "At-the-Market" offerings, issuing new shares to raise capital. This practice dilutes the value of existing shareholders' equity. Consequently, multiple investment firms have recently cut their outlook for the stock:

• TD Cowen lowered its target from $500 to $440.
• Mizuho reduced its price objective from $484 to $403.
• Clear Street made a significant downward revision, moving its target from $443 to $268.

The consensus among market experts is clear: while generally bullish on Bitcoin itself, they are questioning the efficiency of Strategy's approach. A key metric under pressure is the firm's internal "Bitcoin Yield," which measures value creation per share and is negatively impacted by the substantial issuance of new equity.

Details of the Latest Acquisition

Capitalizing on a period of consolidation in the crypto market, Strategy acquired approximately 13,627 Bitcoin between January 5th and 11th. The total investment amounted to $1.25 billion, with an average purchase price of around $91,519 per coin.

Should investors sell immediately? Or is it worth buying Strategy?

This latest transaction brings Strategy's total holdings to 687,410 Bitcoin. With the price of Bitcoin trading steadily near $95,100 on Sunday, the company is already sitting on paper gains from this most recent tranche. This news follows a strong recovery in the company's share price, which has advanced more than 27% over the past 30 days. This rally has, however, pushed the Relative Strength Index (RSI) to a level of 84.2, deep into overbought territory.

Upcoming Catalyst: Fourth-Quarter Results

All eyes are now on a key upcoming event. Strategy is scheduled to release its fourth-quarter financial results on February 5, 2026. Management will be under pressure to address persistent concerns about its capital-raising methods and the trajectory of its Bitcoin Yield during this presentation.

In the near term, the equity's performance remains tightly coupled with Bitcoin's price action. A decisive factor will be whether Bitcoin can maintain support at the $95,000 level and mount another attempt to breach the psychologically significant $100,000 mark.