Strategy added roughly 14,000 Bitcoin to its treasury last week in a $1 billion purchase, pushing its total holdings to approximately 781,000 BTC, valued at about $55.3 billion at current prices. That puts the company just 9,000 coins short of surpassing BlackRock’s iShares Bitcoin Trust (IBIT), the world’s largest spot Bitcoin ETF, which holds approximately 790,000 BTC.
The milestone, if crossed, would make Strategy the single largest institutional Bitcoin holder in the world, a position that would have been unthinkable when the company, then known as MicroStrategy, first converted its treasury to Bitcoin in August 2020.
Key Takeaways
- Strategy bought approximately 14,000 BTC for $1 billion last week, bringing total holdings to ~781,000 BTC worth $55.3 billion.
- The company is within 9,000 BTC of surpassing BlackRock’s iShares Bitcoin ETF as the world’s largest institutional Bitcoin holder.
- Funding came primarily through STRC preferred shares, a vehicle that has raised $3.55 billion since its July 2025 debut.
- TD Cowen maintained a “Buy” rating on MSTR but cut its price target from $440 to $350; shares are down 57% over six months.
How Strategy funds its Bitcoin purchases
The company’s primary acquisition vehicle is now STRC, a preferred share instrument that pays an 11.5% monthly dividend. Since its launch in July 2025, STRC has raised $3.55 billion, with $2.5 billion coming through public offerings. Strategy holds $2.25 billion in cash reserves alongside its Bitcoin stack.
The model is built around a straightforward bet: if Bitcoin appreciates faster than Strategy’s annual dividend obligations of roughly $1.2 billion, the company can sustain payouts indefinitely without diluting common shareholders. Executive chairman Michael Saylor made that case plainly: “If Bitcoin grows faster than that over time, we can cover our dividends indefinitely without issuing new shares.”
The Bitcoin break-even annual return rate for the current structure sits at approximately 2.05%, well below Bitcoin’s historical annualized returns over multi-year periods. Critics, however, point to the 57% decline in MSTR shares over the past six months as evidence the strategy carries meaningful execution risk, particularly in prolonged flat or declining Bitcoin markets.
What surpassing BlackRock would mean
BlackRock’s IBIT launched in January 2024 and rapidly became the most successful ETF debut in history, accumulating roughly 790,000 BTC through institutional inflows. Crossing that threshold wouldn’t give Strategy any formal authority over Bitcoin’s network (Bitcoin is decentralized), but it would be a symbolic and practical milestone.
A single entity holding nearly 4% of all Bitcoin in existence (only 21 million will ever be mined, with about 20 million currently in circulation) draws attention from regulators and market analysts concerned about concentration risk. Strategy’s continued accumulation has already prompted questions at the SEC level about disclosure and counterparty exposure for funds holding MSTR shares.
For investors, the comparison also reframes Strategy’s positioning: the company is no longer just a high-beta Bitcoin proxy for retail traders. With a holdings base approaching BlackRock’s dedicated ETF vehicle, Strategy is increasingly operating as a direct competitor to institutional custody products.
Bitcoin’s current market backdrop
The purchase arrived against a rough week for Bitcoin prices. The coin was trading around $71,855 on April 13, down from above $73,000 over the weekend, following geopolitical turbulence after U.S.-Iran peace negotiations collapsed and President Trump ordered a naval blockade of the Strait of Hormuz. Oil jumped 7% to $97 a barrel, and risk assets broadly retreated.
On-chain data showed Bitcoin facing roughly $20 million per hour in profit realization above the $70,000 level, suggesting sustained selling pressure from holders taking gains. Despite the price weakness, Strategy’s purchase last week indicates the company views dips as accumulation opportunities regardless of near-term macro conditions.
TD Cowen maintained its “Buy” rating on MSTR following the announcement but cut its price target from $440 to $350, citing broader market conditions and Bitcoin volatility. The stock was trading at $125.50 at the time of writing, down 2.5% on the day.
Frequently asked questions
How does Strategy compare to BlackRock’s Bitcoin ETF?
Strategy holds approximately 781,000 BTC on its corporate balance sheet, roughly 9,000 coins below BlackRock’s iShares Bitcoin Trust (IBIT) which holds about 790,000 BTC. Unlike IBIT, Strategy’s Bitcoin is held directly on the company’s books rather than as a custody vehicle for external investors.
What is STRC and how does it fund Bitcoin purchases?
STRC is a preferred share instrument issued by Strategy that pays an 11.5% monthly dividend. It has raised $3.55 billion since its July 2025 launch. Strategy uses those proceeds to buy Bitcoin, betting that BTC appreciation will exceed the cost of dividend payments over time.
Is Strategy’s Bitcoin concentration a regulatory concern?
Holding roughly 4% of all Bitcoin in existence has drawn regulatory attention. The SEC has raised disclosure questions about funds with significant MSTR exposure, and market analysts monitor concentration risk in a decentralized asset where one entity holds such a large portion of supply.
