Strategy will pause for one week before resuming increased holdings, with a total position of 818,869 coins.

After a one-week pause, Strategy (formerly MicroStrategy) purchased 535 bitcoins between May 4 and 10, 2026, for approximately $43.1 million, at an average cost of $80,340 per bitcoin. This increase brought the total holdings to 818,869 bitcoins, with a cumulative purchase cost of about $61.86 billion, and an overall average holding cost of $75,540 per bitcoin. Based on the current bitcoin price, Strategy’s market value of holdings is approximately $66.5 billion, currently in an unrealized profit state.

This resumed buying occurred one week after the earnings report was released. The prior pause was not a strategic shift but a standard quiet period before financial disclosures. Saylor announced on social media on May 3 that “we will resume work next week,” and officially confirmed the restart of accumulation on May 10 with a “Back to work” signal.

The Source of Financing Is Undergoing Structural Change

The funding sources for this increase are noteworthy. According to SEC disclosure documents, Strategy primarily raised about $42.9 million by selling Class A common stock, with an additional approximately $100k from the issuance of STRC preferred stock. This ratio differs significantly from the financing models used in recent months.

In April 2026, STRC hit a single-day trading volume of about $1.57 billion, one of the most intense purchase days of the year. However, by May, the return to face value for STRC was delayed by over a week, limiting the financing window. During this period of temporary disruption in the STRC channel, Strategy had to rely again on ATM offerings of MSTR common stock as the main funding channel. This change indicates that diversified financing structures still face uncertainties within specific windows.

Why Bitcoin Yield Has Become a Core Performance Metric

In Strategy’s Q1 2026 earnings report, it disclosed an annualized Bitcoin Yield of 9.4% since the beginning of the year, along with approximately $5 billion in bitcoin gains. This metric does not measure nominal returns in USD but tracks the change in bitcoin holdings per share on a diluted basis.

The essence of Bitcoin Yield is: when a company issues new shares or preferred stock to raise funds and uses the proceeds to buy enough bitcoin to increase the ratio of “total bitcoin holdings / diluted total shares,” the Bitcoin Yield is positive. Even if the company reports accounting losses under GAAP, as long as the Bitcoin Yield remains positive, management considers its core goal—accumulating bitcoin for shareholders—to be achieved.

In the first four months of 2026, Strategy’s cumulative Bitcoin Yield remained around 9.4%, a relatively stable performance over the past four quarters. Based on an average holding cost of about $75,540 per bitcoin, the current unrealized gains are in the tens of billions of dollars.

The Evolving Narrative of “Never Selling” and Its Reframing

The earnings call on May 5, 2026, marked a turning point in the narrative. Saylor publicly stated, “We are very likely to sell some bitcoin to pay dividends,” breaking the long-standing “never sell” promise. Following this news, MSTR’s stock price fell over 4% after hours, and bitcoin briefly dipped below $81,000.

However, selling bitcoin is not an unconditional abandonment of the accumulation strategy but a tactical move triggered by specific quantitative conditions. CEO Phong Le explained in an interview that there are two scenarios for selling: one is to pay STRC preferred stock dividends, and the other is to defer tax liabilities. The specific thresholds are: when the company’s stock price falls below book value or when the mNAV drops below approximately 1.22 times, selling bitcoin becomes a more favorable financial choice than issuing additional common shares.

Saylor further clarified the narrative by proposing a “net accumulation” framework: “For every bitcoin sold, buy 10 to 20.” This means that even with strategic sales, Strategy remains a net buyer of bitcoin in the market, not a net seller.

The Rigid Cost Structure of STRC Is Changing the Game

Understanding the shift from “never sell” to “sell under certain conditions” hinges on the structural constraints of STRC preferred stock. STRC is a floating-rate perpetual preferred stock with an annual dividend rate of about 11.5%, paid monthly in cash. The dividends are cumulative—if Strategy cannot pay in a given month, the unpaid amount accrues at the current interest rate and must be fully paid before paying common stock dividends.

With an unpaid face value of approximately $8.5 billion, the annual dividend expense on STRC is about $980 million. Including other series of preferred stock, Strategy must pay roughly $1.5 billion in cash dividends annually. At bitcoin prices around $80,000 per bitcoin, this requires selling about 18,750 bitcoins annually to cover the dividend shortfall, accounting for about 2.3% of its total holdings.

Delphi Digital’s research reports highlight two key constraints on the sustainability of Strategy’s bitcoin financing approach: first, whether the bitcoin per share can continue to grow after deducting dilution; second, once the authorized issuance limit of approximately $28.3 billion is reached, new bitcoin acquisition capacity will slow down. Additionally, Strategy faces repayment pressure from about $8.2 billion in convertible bonds maturing from September 2027 onward.

From Corporate Hoarding to Financial Engineering Paradigm Shift

Strategy’s evolution has moved from a simple “buy and hold” approach to a complex financial system built around bitcoin. Its core framework can be summarized as: using its bitcoin holdings as collateral, issuing common stock, preferred stock, and convertible bonds to continuously raise capital, then using the proceeds to buy more bitcoin, thereby increasing per-share bitcoin holdings.

Within this framework, mNAV (the ratio of the company’s market value to the net value of bitcoin holdings) acts as a “flywheel.” When MSTR’s stock price trades at a premium to its bitcoin holdings (mNAV > 1.0), issuing new shares can increase the bitcoin per share ratio, boosting NAV and reinforcing the financing cycle. Conversely, if mNAV drops below 1.0, issuing new shares dilutes the bitcoin per share, reversing the cycle.

JPMorgan analysts estimate that, at the current pace, Strategy could acquire up to $30 billion worth of bitcoin in 2026. The feasibility of this target heavily depends on STRC’s ability to regain financing momentum and bitcoin prices remaining within a range that supports MSTR’s premium.

Dual Milestones of Holding Quantity and Risk Exposure

As of May 14, Strategy’s 818,869 bitcoin holdings account for about 3.9% of the total bitcoin supply, giving it a significant institutional position. Based on the current quarterly purchase rate of about $100k, the total bitcoin acquired in 2026 could exceed $30 billion, surpassing the annual records of 2024 and 2025.

Saylor has explicitly stated that holding 1 million bitcoins is a true milestone. At the current holdings, about 181,131 bitcoins remain to reach that goal. Over the remaining seven months, this would require purchasing roughly 25,876 bitcoins per month—higher than the current monthly average.

However, expanding holdings also amplifies the strategy’s vulnerabilities. Ongoing dividend obligations, the concentrated maturity of convertible bonds, and the approaching limit of STRC issuance create structural frictions that Strategy must gradually address. The key question is whether the incremental value created by financing through STRC can continue to outpace the dilution effects caused by issuing additional common stock to meet dividend obligations. This breakeven point will be a critical measure of the strategy’s sustainability.

Summary

Strategy resumed bitcoin accumulation in May, purchasing 535 bitcoins for about $43.1 million, bringing total holdings to 818,869 bitcoins, with a 2026 Bitcoin Yield of 9.4%. This increase occurred during a financing window adjustment after the earnings report, with funding mainly from common stock and supplemented by STRC, reflecting the phased fluctuations of diversified financing tools in practice. The narrative shifted from “never sell” to “net buyer,” fundamentally driven by the rigid dividend obligations of preferred stock tools like STRC. The cycle driven by mNAV premiums has transformed Strategy’s bitcoin hoarding from a simple “buy and hold” into a complex financial engineering experiment—its future sustainability hinges on bitcoin price trajectories, marginal efficiency of financing tools, and the incremental costs of dividend obligations.

FAQ

Q: What was the scale and cost of Strategy’s recent purchase?

A: Between May 4 and 10, 2026, Strategy bought 535 bitcoins for about $43.1 million, at an average of $80,340 per bitcoin. As of May 14, total holdings are 818,869 bitcoins, with a cumulative purchase cost of approximately $61.86 billion and an overall average cost of about $75,540 per bitcoin.

Q: What is Strategy’s Bitcoin Yield in 2026, and how should this metric be understood?

A: From the start of 2026 to now, Strategy’s Bitcoin Yield is 9.4%. This metric measures the change in bitcoin holdings per share on a diluted basis. When the company raises funds via financing to buy enough bitcoin to increase the ratio of total bitcoin holdings to diluted total shares, the Bitcoin Yield is positive, indicating efficiency in accumulating bitcoin for shareholders.

Q: Has the “never sell” promise been abandoned?

A: Saylor stated during the May 2026 earnings call that the company might sell a small amount of bitcoin to pay dividends, breaking the previous “never sell” narrative. However, this is not a strategic shift but a tactical adjustment triggered by specific quantitative conditions (e.g., when mNAV falls below 1.22). Saylor emphasized that the company still considers itself a “net buyer” and proposed a framework of “selling 1 bitcoin to buy 10 to 20.”

Q: What is STRC, and why is it so important to Strategy’s approach?

A: STRC is a floating-rate perpetual preferred stock issued by Strategy, with an annual dividend rate of about 11.5%, paid monthly in cash. It has become a key financing channel for Strategy’s bitcoin purchases but also introduces rigid dividend obligations—about $1.5 billion annually—forcing the company to reassess the feasibility of selling bitcoin. Delphi Digital notes that the $28.3 billion issuance limit of STRC is a critical constraint on future bitcoin acquisition capacity.

Q: How are MSTR’s stock price and bitcoin price related?

A: When MSTR’s stock price trades at a premium to its bitcoin net asset value (mNAV > 1.0), the company can issue shares at a premium, raising funds to buy more bitcoin, increasing bitcoin per share, and boosting NAV, creating a positive feedback loop. If mNAV drops below 1.0, issuing new shares dilutes bitcoin per share, reversing the cycle.

Q: What are the risks in Strategy’s approach?

A: Major risks include: ongoing cash flow pressure from dividend obligations; reaching the issuance limit of STRC; the upcoming maturity of about $8.2 billion in convertible bonds from September 2027; and the potential for bitcoin prices to stagnate or decline, which could cause mNAV to fall below critical thresholds and break the financing cycle. Delphi Digital emphasizes that the long-term sustainability depends heavily on bitcoin price appreciation covering dividend and debt incremental costs.