Strategy: Bitcoin As A Treasury Model Faces Stress Test

2026-01-30 23:52:07 ET

Strategy's ( MSTR ) Bitcoin-as-a-Treasury ("BaaT") business model has dramatically imploded on the back of a 58% decline over the last 1-year. This has broadly eliminated an inherent tentpole premium that has formed a currency for MSTR's rapid accumulation of BTC since a sleepy enterprise software company operating out of Tyson's Corner, Virginia, decided to buy and hold BTC on its balance sheet in the summer of 2020. This new zeitgeist represents MSTR's most intense stress test. It could really come to represent a permanent step change in the company's prospects, a rollback of the highly lucrative BTC accumulation strategy that allowed the constant issuance of new common equity to buy BTC. This strategy has been ruthlessly effective, allowing MSTR to increase its BTC holdings to 712,647 as of its most recent dashboard update. ...

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