MicroStrategy’s Biggest Asset is Not Bitcoin But Belief
- MicroStrategy’s conviction in Bitcoin supports its aggressive treasury strategy.
- Bitcoin per share growth slowed, reducing accretion efficiency throughout January 2026.
- mNAV slipped below 1x, making equity pricing and investor confidence now important.
MicroStrategy disclosed a $264.1 million Bitcoin purchase yesterday, funded entirely through share sales. The company bought Bitcoin at an average $90,061 during a volatile January, as prices fell into the high-$80,000 range. The move involved MicroStrategy, capital markets, and investors, driven by its ongoing treasury strategy and executed through equity issuance.
Capital Markets Funding Bitcoin Purchase
MicroStrategy disclosed that it acquired Bitcoin using proceeds from share sales. Notably, the company sold 1,569,770 common shares, raising $257.0 million in net proceeds. It also sold 70,201 STRC preferred shares, generating an additional $7.0 million.
Together, those proceeds closely matched the $264.1 million Bitcoin purchase cost. However, the funding did not come from operating cash flows or retained earnings. Instead, MicroStrategy relied fully on capital markets to finance the acquisition.
This structure matters because the company’s strategy depends on issuing shares above Bitcoin net asset value. When equity trades below asset value, issuance risks reducing value per share. That context frames the pressure building beneath the latest purchase.
mNAV Compression
MicroStrategy’s diluted multiple-to-net-asset-value now sits near 0.94x, according to company data. This means the stock trades at a 6% discount to its Bitcoin backing per share. However, equity issuance works best only when shares trade above net asset value.
Historically, the company justified dilution by increasing Bitcoin per diluted share. That benefit now appears marginal. On January 5, MicroStrategy held 673,783 BTC with 345.6 million diluted shares. That equaled roughly 0.001949 BTC per share.
By January 26, holdings rose to 712,647 BTC, while diluted shares climbed to 364.2 million. Bitcoin per share reached about 0.001957 BTC. That change shows only a 0.38% monthly increase.
Also, Bitcoin per share barely moved between January 20 and January 26. During that period, new share issuance no longer produced meaningful exposure gains. As a result, accretion efficiency has weakened sharply.
Dilution increased by 5.36% during January, while Bitcoin holdings rose 5.77%. Although holdings still slightly outpaced dilution, the margin narrowed significantly. This erosion coincided with the mNAV decline below parity.
Related: MicroStrategy Buys 10,107 BTC, Total Now 471,107 BTC: Report
Belief Now Supports Strategy
Over the past 19 months, MicroStrategy raised an estimated $18.56 billion through common equity issuance. The company issued about 226.6 million shares during that period. Notably, the January purchase extended this pattern amid weaker market conditions.
The firm also increasingly relies on preferred stock issuance. Preferred shares introduce fixed claims that rank above common equity. While this approach supports continued buying, it adds long-term requirements and balance sheet complexity.
MicroStrategy has over 712,000 BTC, making it the largest corporate Bitcoin holder. Its exposure makes the company a bellwether for corporate digital asset strategies entering 2026. However, that scale magnifies sensitivity to equity pricing and investor sentiment.
Bitcoin has seen constant volatility in January, falling over 5% during the past week. Despite that move, MicroStrategy continued buying, according to company disclosures. Michael Saylor has consistently framed Bitcoin as a long-term treasury reserve.
The strategy is intact, yet its mechanics have changed. With mNAV below 1.0x and accretion fading, continued purchases depend more on investor confidence. Access to capital markets now acts as the primary enabler.
MicroStrategy’s January Bitcoin purchase reinforced its commitment but highlighted structural dependence on equity markets. Data shows dilution rising, accretion fading, and mNAV slipping below parity. As a result, market belief now sustains the strategy more than mathematical advantage.
