Strategy’s Bitcoin Holdings Face Stiff Reality with 51% Overpay

Strategy’s Bitcoin Holdings Face Stiff Reality with 51% Overpay

Strategy, known for its aggressive Bitcoin purchasing strategy, has encountered a significant challenge. A recent analysis indicates that over 51% of its Bitcoin stash was acquired at higher prices than current market values. This statistic has potential ramifications for the firm's market perception and valuation.

Key Takeaways

More than 51% of Strategy's Bitcoin was purchased at prices higher than today’s market value.
The company holds 649,870 BTC, making it the largest corporate Bitcoin holder globally.
The average purchase price for Strategy's Bitcoin is $74,430, while BTC is currently trading around $86,900.
A significant portion of its Bitcoin was acquired during the high price phases of 2021 and 2024.
Strategy’s market cap is approximately $49 billion, while its Bitcoin assets are valued at around $56.4 billion, indicating a potential undervaluation of its stock.

The Situation with Strategy's Bitcoin

Strategy, which has built its identity around continuous Bitcoin purchases, is facing unexpected scrutiny. According to data from a CryptoQuant analyst, over 51% of the company’s total Bitcoin holdings were bought at prices that exceed today's market rates. This information could significantly alter how investors view Strategy's financial standing.

Currently, Strategy possesses 649,870 BTC, solidifying its status as the largest corporate Bitcoin holder in the world. Its average purchase price stands at $74,430, while Bitcoin is currently trading near $86,900. Despite this positive figure, the details surrounding where and when these purchases occurred paint a different picture.

Understanding the Purchase History

A considerable portion of Strategy's Bitcoin was acquired during the high price periods of 2021, 2024, and early 2025, times when Bitcoin prices were significantly higher than today. Particularly concerning is the fact that more than half of the company's coins are currently valued below their purchase price from 2025.

Bitcoin Price History
Source: CryptoQuant

The grim reality of this situation became evident following Bitcoin's market drop from above $120,000 to the high-$80,000 range within a short timeframe. This decline brought BTC prices back into the territory where Strategy made many of its substantial purchases.

While older Bitcoin coins bought at significantly lower levels (under $20,000) are still profitable, the more recent, higher-priced purchases are not faring as well.

Market Valuation Insights

Currently, Strategy's stock is trading at the lower end of its valuation ranges, reflecting investor sentiment regarding its Bitcoin holdings. The company's market capitalization is about $49 billion, yet the Bitcoin it owns represents a value of approximately $56.4 billion. This disparity indicates that the stock trades below the intrinsic value of the company's Bitcoin assets.

While the 51% statistic does not pose a direct threat to Strategy, it highlights the extent to which the company has overpaid for its Bitcoin holdings. As the market evolves, Bitcoin's performance will increasingly influence Strategy's valuation and future prospects.