Strategy's Bitcoin Treasury: $48.7 Billion in Holdings with Strong Debt Coverage and No Liquidation Risk

As of February 22, 2026, Strategy Inc. (formerly MicroStrategy, ticker MSTR) holds **717,131 Bitcoin**, acquired at an average price of approximately $76,027 per coin for a total cost basis of around $54.52 billion. At current Bitcoin market prices near $68,000, these holdings are valued at roughly **$48.7 billion**, placing the company underwater on its Bitcoin investments by several billion dollars amid the ongoing bearish pressure in the crypto market.

Despite the unrealized losses, Strategy's position remains robust from a balance sheet perspective. The Bitcoin treasury is **unencumbered**—meaning none of the assets are pledged as collateral—eliminating any immediate risk of forced liquidation or margin calls, even in a prolonged downturn. Recent analyses indicate that the company's Bitcoin assets are approximately **six times** its total debt, estimated at around $8.2 billion as of the end of 2025. Executive leadership has emphasized that significant challenges to debt repayment would only arise if Bitcoin's price fell to $8,000 and remained there for an extended period of five to six years, a scenario far below current levels.

To support ongoing obligations, including approximately $888 million in annual dividend payments (primarily related to preferred instruments like the STRC series), Strategy plans to build and maintain **$2.25 billion in cash reserves** by the end of 2025. This buffer is designed to cover more than 30 months of dividends without needing to sell any Bitcoin, providing substantial runway through potential market volatility.

The first major debt maturity is scheduled for September 2027, giving the company a multi-year window to navigate cycles. Strategy continues its aggressive accumulation strategy, recently adding 2,486 BTC for $168.4 million between February 9 and 16, 2026, funded through at-the-market equity offerings of common and preferred shares. This marks one of the latest in a series of weekly purchases, reinforcing its identity as the world's largest corporate Bitcoin holder.

The primary ongoing challenge lies in sustaining growth and Bitcoin-per-share accretion during bear markets. Historical periods, such as 2022, showed slower accumulation (around 10,000 BTC added) and periods where the stock traded below net asset value. In the current environment—with Bitcoin down significantly from peaks and MSTR shares reflecting leveraged exposure—the company's ability to raise capital efficiently while preserving shareholder value will be closely watched.

Overall, Strategy's approach positions it as a high-conviction, leveraged play on Bitcoin's long-term upside, with a fortified structure that prioritizes holding through volatility rather than forced sales. Whether this resilience holds through extended weakness or catalyzes outperformance in a recovery remains a defining question for investors in the months ahead.
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