Key Insights:
- Strategy had added 1142 BTC at approximately $78815, when prices were trading below recent highs.
- The acquisition was financed through the sale of MSTR shares, not cash or debt.
- MSTR shares moved with Bitcoin as volatility returned to the market
Strategy Bitcoin purchase activity resumed last week, as the firm led by executive chairman Michael Saylor added another tranche of Bitcoin amid renewed market weakness.
SEC Filing Details Strategy Bitcoin Buy During Market Volatility
Regulatory filings show the company increased its Bitcoin reserves while prices traded below recent highs, even as its publicly listed shares retreated alongside the broader crypto market.
The transaction came amid heightened volatility for both Bitcoin and Strategy’s stock, following a sharp correction that briefly pushed the cryptocurrency well below key psychological levels.
A filing submitted to the U.S. Securities and Exchange Commission revealed that Strategy purchased 1,142 BTC for approximately $90 million. The purchase was executed at an average price of $78,815 per Bitcoin. This places Strategy’s overall average acquisition price at $76,056 per Bitcoin, based on disclosed figures.
Funding Structure Behind the Latest Strategy for Bitcoin Purchase
The SEC filing detailed that the latest Strategy Bitcoin purchase was funded through equity issuance rather than cash reserves or debt. Strategy sold 616,715 shares of its Class A common stock during the period, generating net proceeds of about $89.5 million. Those funds were then used to finance the Bitcoin acquisition.
Source: Michael Saylor
Saylor had hinted at the purchase the day before in his regular Sunday post on X, a pattern that has preceded several prior acquisitions.
The confirmation arrived as Bitcoin traded below the company’s average cost basis, marking the second time Strategy has added Bitcoin while prices were under its historical acquisition average during the current cycle.
Stock Performance Tracks Bitcoin Volatility
Strategy’s stock has continued to move closely with Bitcoin price action. Trading data shows that MSTR shares fell to around $107 last Thursday as Bitcoin dropped sharply, at one point sliding to near $60,000. The decline erased part of the gains the stock had recorded earlier in the week.
As crypto markets stabilized modestly, MSTR shares rebounded. On Friday, the stock climbed approximately 26%, closing near $135. That move coincided with Bitcoin’s recovery above $70,000 following the prior day’s selloff.
According to Yahoo Finance data, Strategy shares began the current trading session near $128, down over 5% from the previous week. The regained pressure reflects the perennial uncertainty, with Bitcoin trading around $70,000 again.
Background and Purchase at a Loss
The recent Bitcoin purchase can be compared with the same period in 2022, when Bitcoin was below $30 000, and the firm’s average purchase price was approximately $30 600. During that earlier downturn, Strategy slowed the pace of its acquisitions but continued to make smaller purchases even as prices remained under its cost basis.
In the days leading up to the latest filing, some market participants speculated that the company might avoid buying Bitcoin below its average acquisition price due to the optics of unrealized losses.
Those discussions circulated on social media platforms, with several users joking that a higher-priced purchase announcement would be more consistent with past behavior.
Analyst Ratings and Liquidity Position
Despite near-term volatility, major Wall Street firms have maintained positive ratings on Strategy’s stock. Citigroup reiterated a buy rating and set a price target of $325. TD Cowen also reaffirmed its buy rating, with analyst Lance Vitanza assigning a target of $440. His assessment referenced the company’s positioning ahead of a potential Bitcoin recovery.
Strategy management has also addressed concerns around liquidity and forced asset sales. CEO Phong Le stated during the company’s earnings call that liquidating Bitcoin holdings would be considered only under extreme conditions.
He specified that such a scenario would require Bitcoin to fall to $8,000 and remain there for 5 consecutive years, through 2032, when obligations tied to convertible notes come due.
