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Strategy Inc. (formerly MicroStrategy) spent 2025 building the largest corporate Bitcoin reserve the public markets have ever financed, but the scale of that ambition ended up colliding with the logic of its own stock. What began as an aggressive accumulation strategy, powered by the company’s appetite for leverage and a willingness to dilute existing shareholders, evolved into a structural contradiction that now defines the firm. A balance sheet swollen by Bitcoin, but a narrative stretched to breaking Strategy has raised $21 billion across seven securities offerings in a single year to expand its holdings to roughly 641,000 BTC, a figure that now represents close to 3% of the asset’s finite supply. Yet as the balance sheet grew to historic proportions, the equity story unraveled, leaving the stock 68% below its highs and forcing investors to reassess what kind of company they were actually buying into. The shift did not happen suddenly. Over the past two quarters, institutions pared their exposure from $36.32 billion to $30.94 billion, a $5.38 billion retreat that reflected broader risk rotation across the market but also genuine discomfort with Strategy’s financing model. The company no longer trades like a software developer or a technology platform. It moves in near lockstep with Bitcoin itself, yet its capital structure behaves like an experiment in perpetual leverage. Investors are confronted with an entity that generates multi-billion-dollar profits when Bitcoin rallies and multi-billion-dollar losses when it falls. For many, the volatility was tolerable. It was the dilution layered on top of it that proved untenable. A year of capital that redefined a company The mechanics underpinning Strategy’s transformation show how aggressively the firm leaned into its thesis. The firm stated that it issued $11.9 billion in common equity, $6.9 billion in preferred equity, and $2.0 billion in convertible debt, and…

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Filed under: News - @ November 26, 2025 10:28 am