Strategy and Bitmine Defy Bear Market with $260 Million Purchases

Treasury Strategies Under Pressure: Why the Largest Crypto Companies Are Buying Now

While the crypto market faces significant price declines, the two largest publicly traded treasury companies are sending a clear signal: Strategy and Bitmine Immersion Technologies have invested a combined $260 million in Bitcoin and Ethereum within one week. This accumulation strategy comes at a time when both companies are carrying substantial unrealized losses on their books—raising fundamental questions about the sustainability of the treasury model. At the same time, the consistent buying demonstrates a remarkable contrast to the prevailing market sentiment.

The Facts

Strategy has further expanded its position as the world's largest institutional Bitcoin holder. The company led by Michael Saylor acquired an additional 2,486 BTC between February 9 and 16 for a total of $168.4 million ^[1]. The average purchase price was $67,710 per Bitcoin—significantly below the company's average entry price of $76,027 ^[2]. This increases the total holdings to 717,131 BTC, representing more than 3.4 percent of the circulating Bitcoin supply ^[1].

The total acquisition cost for the Bitcoin holdings amounts to approximately $54.5 billion. With a current market value of about $48.8 billion, this results in an unrealized loss of $5.7 billion ^[1]. The recent purchases were financed through the sale of 660,000 MSTR shares for $90.5 million and 785,354 Series STRC preferred shares for $78.4 million ^[4]. These capital measures are part of the so-called "42/42" plan, through which Strategy aims to raise a total of $84 billion through equity and convertible bonds by 2027 ^[1].

In parallel, Bitmine Immersion Technologies has further intensified its Ethereum focus. The company acquired 45,759 ETH last week and now holds a total of 4,371,497 ETH—equivalent to 3.62 percent of the circulating Ethereum supply ^[3]. Of this holding, 3,040,483 tokens are staked, which according to company chief Tom Lee generates annualized staking revenue of $176 million ^[3]. With full implementation of its own staking infrastructure, Bitmine projects annual revenues of up to $252 million.

In addition to its Ethereum holdings, Bitmine possesses 193 Bitcoin, a $200 million stake in Beast Industries, and $17 million in Eightco Holdings. The company values its total reserves at $9.6 billion, including $670 million in liquid assets ^[3]. Tom Lee compared the current market sentiment to the lows of November 2022 and the crypto winter of 2018, but reaffirmed the continued accumulation strategy ^[3].

The stock performance of both companies reflects the market pressure: Strategy shares are currently trading at around $129—a decline of approximately 72 percent from the peak of $455.90 in July 2025 ^[4]. Bitmine has recorded an even more drastic drop of about 85 percent from its July high of $135, but still trades roughly 175 percent higher than a year ago ^[4].

Analysis & Context

The diverging strategies of Strategy and Bitmine reveal two fundamentally different approaches to the treasury model. While Strategy focuses exclusively on Bitcoin as a long-term store of value, Bitmine utilizes Ethereum's staking mechanism to generate ongoing revenue. This income component gives Bitmine's model an additional dimension: with estimated annual staking revenues of $176 to $252 million, the company has a cash flow that exists independently of price movements—a fundamental difference from Strategy's purely speculative approach.

However, Strategy's unrealized losses of $5.7 billion raise critical questions about the sustainability of the business model. The company finances its Bitcoin purchases primarily through stock sales and convertible bonds—a model that only works as long as investors are willing to provide the company with capital. The 72 percent decline in MSTR stock suggests that this confidence is waning. Michael Saylor's claim that Strategy could withstand a 90 percent Bitcoin price collapse ^[1] may be technically true—but practically, such a scenario would massively impair the company's refinancing capability.

Historically, aggressive accumulation strategies in bear markets have rewarded long-term oriented investors—provided the companies in question survive the dry spell. The fact that Strategy accounted for over 90 percent of all Bitcoin purchases by publicly traded companies in January ^[2] makes the company a systemically important player in the institutional Bitcoin ecosystem. A failure of Strategy's model could have significant implications for Bitcoin adoption in the traditional financial sector. Bitmine's comparatively diversified portfolio with staking revenues, Bitcoin holdings, and strategic investments appears as a lower-risk variant of the treasury approach in this context.

Conclusion

• Strategy and Bitmine are pursuing consistent accumulation despite massive unrealized losses—a clear commitment to the long-term value proposition of Bitcoin and Ethereum, but one that carries considerable risks

• The fundamental difference between both approaches lies in revenue generation: Bitmine's staking income of up to $252 million annually provides a cash flow buffer that Strategy does not possess

• The dramatic stock price losses of both companies illustrate that treasury models do not protect against market volatility—on the contrary, the leverage effect of debt works in both directions

• With a controlled 3.4 percent of the Bitcoin circulation, Strategy has reached a systemically important position whose fate could have significant implications for institutional Bitcoin adoption

• Current purchases at lower prices improve average acquisition costs, but presume that refinancing through equity markets will continue to function even during a sustained bear market—an increasingly fragile assumption