Published & Updated: February 2026
MicroStrategy remains the single largest corporate holder of Bitcoin in the world, with 712,647 BTC on its balance sheet as of early February 2026. The company’s average acquisition cost sits at approximately $76,307 per coin, giving it a modest unrealized gain at current trading levels around $78,000–$80,000. However, the slim margin above cost basis — combined with the 11.25% dividend obligation on its perpetual preferred stock (STRK) — has sparked debate about cash-flow sustainability if Bitcoin were to fall meaningfully below this level.
Michael Saylor, Executive Chairman, continues to defend the strategy aggressively, framing Bitcoin as the superior long-term treasury asset for corporations. This article examines MicroStrategy’s current Bitcoin holdings, the average cost basis, recent capital-raising activity, cash-flow implications of the preferred stock dividend, risks if BTC drops below cost, and how the company’s approach compares to other corporate Bitcoin treasuries in 2026.
MicroStrategy Bitcoin Holdings – Current Status (Feb 2026)
| Metric | Value | Notes / Context |
|---|---|---|
| Total Bitcoin Holdings | 712,647 BTC | ~3.4% of total Bitcoin supply |
| Average Acquisition Cost | ~$76,307 per BTC | Weighted average across all purchases |
| Current Market Value (at ~$79,000) | ~$56.3 billion | Modest unrealized gain |
| Market Cap of MicroStrategy (MSTR) | ~$38–40 billion | Trades at significant discount to BTC treasury value |
| Preferred Stock Dividend Obligation | 11.25% on perpetual preferred (STRC) | Annual cash outflow if BTC falls below cost basis |
At Bitcoin prices above $76,307, MicroStrategy shows a paper profit on its holdings. Below this level, the company would face unrealized losses and potential cash-flow pressure from dividend obligations.
Recent Capital Raises – Funding the Bitcoin Strategy
MicroStrategy has continued its aggressive accumulation strategy through multiple equity and debt raises:
- ATM Equity Offerings: Regularly sells common stock to fund BTC purchases (e.g., $257M raise used for 2,932 BTC buy in late January 2026)
- Perpetual Preferred Stock (STRC): Issued with 11.25% dividend — significantly higher than typical corporate debt yields — to attract yield-seeking capital
- Convertible Notes: Earlier issuances (2024–2025) with low coupons but conversion options into MSTR stock at premiums
This structure allows MicroStrategy to convert equity or debt capital into Bitcoin at scale, but it also creates fixed cash obligations (especially the high-yield preferred) that become problematic if BTC trades below cost basis for extended periods.
Key Risks if Bitcoin Falls Below Average Cost Basis (~$76,307)
While MicroStrategy has repeatedly stated it has no intention of selling Bitcoin, several risks emerge at lower price levels:
- Cash Flow Strain from Preferred Dividend
The 11.25% dividend on perpetual preferred stock requires annual cash payments. If BTC trades below $76,307 for a prolonged period, unrealized losses grow while cash obligations remain fixed. - NAV Premium Compression
MSTR stock often trades at a premium to the net asset value of its BTC holdings. A sustained price below cost basis could compress or even invert this premium, making equity raises more dilutive. - Debt Covenants & Balance Sheet Pressure
While MicroStrategy has manageable debt levels relative to its BTC treasury, prolonged unrealized losses could raise concerns among creditors or rating agencies (if rated). - Psychological & Market Sentiment Impact
A drop below average cost basis would be a symbolic negative for the “Bitcoin treasury” narrative, potentially triggering broader selling of MSTR stock.
Michael Saylor’s Long-Term Bitcoin Thesis – Still Intact?
Michael Saylor continues to argue that Bitcoin is the superior long-term treasury asset for corporations, citing:
- Fixed supply (21 million cap) vs. unlimited fiat printing
- Network security & decentralization
- Adoption trajectory (ETFs, corporate treasuries, nation-state interest)
- Inflation hedge characteristics
Despite short-term volatility and the narrow margin above cost basis, Saylor has repeatedly stated MicroStrategy has no plans to sell Bitcoin and views any weakness as a buying opportunity.
Trading & Positioning Strategies on Tapbit
- Create your Tapbit account (0% maker fees)
- Deposit USDT or fiat via bank transfer
- MicroStrategy proxy play: Long BTC/USDT perpetuals (20–50x leverage) as a hedge or directional bet on MSTR’s Bitcoin accumulation strategy
- Dip accumulation: DCA BTC/USDT on pullbacks below $76,307 (MicroStrategy average cost basis)
- Risk-off hedge: Long XAU/USDT perpetuals if Bitcoin weakness persists
- Risk control: Max 1–2% account risk per trade; trailing stops below key supports
FAQs – MicroStrategy Bitcoin Holdings & Risks (February 2026)
What is MicroStrategy’s average Bitcoin cost basis?
Approximately $76,307 per BTC across all purchases as of February 2026.
How much Bitcoin does MicroStrategy hold?
712,647 BTC — the largest corporate treasury in the world, representing roughly 3.4% of total Bitcoin supply.
What happens if Bitcoin falls below $76,307?
MicroStrategy would show unrealized losses on its holdings. Cash-flow pressure from the 11.25% preferred stock dividend would increase if the price remains below cost basis for an extended period.
Is MicroStrategy still buying Bitcoin?
Yes — the company continues opportunistic accumulation during price weakness, funding purchases through ATM equity offerings and preferred stock issuances.
Conclusion & 2026 Outlook
MicroStrategy’s Bitcoin treasury strategy remains one of the most aggressive corporate experiments in modern finance. With 712,647 BTC acquired at an average cost of ~$76,307 per coin, the company sits on a modest unrealized gain at current levels (~$78,000–$80,000). However, the 11.25% dividend on its perpetual preferred stock introduces meaningful cash-flow risk if Bitcoin were to trade below cost basis for a prolonged period. Michael Saylor continues to frame Bitcoin as the ultimate long-term corporate treasury asset, dismissing short-term volatility as noise.
For traders and investors, MicroStrategy offers a leveraged proxy to Bitcoin price movements — with higher upside and downside potential than direct BTC ownership. Tapbit provides efficient execution for both direct Bitcoin exposure and related assets: 0% maker fees on BTC/USDT spot pairs, deep liquidity, up to 125x leverage on perpetuals, and fast fiat ramps. Monitor Bitcoin price relative to $76,307, MSTR NAV premium compression, and upcoming equity/debt raises for the next catalysts — MicroStrategy’s Bitcoin bet remains one of the boldest corporate treasury strategies in 2026.
Trade Bitcoin & MicroStrategy-related volatility on Tapbit:
- Sign Up on Tapbit (0% maker fees)
- Login & Deposit
- Live BTC/USDT Spot & Perpetual Charts
Disclaimer: Cryptocurrency and equity trading involve significant risk of loss. Prices are highly volatile and can change rapidly. Corporate Bitcoin holdings and dividend obligations do not guarantee future performance. This article is for informational purposes only and does not constitute investment advice. Always conduct your own research (DYOR) and never invest more than you can afford to lose completely.
