MicroStrategy’s Largest Bitcoin Purchase in a Year Shakes Stock Market Confidence

Strategy (previously MicroStrategy) made its most substantial Bitcoin buy since November 2024, simply a day earlier than Bitcoin’s worth dropped under the $90,000 threshold.

Despite the corporate’s constant dedication to its aggressive accumulation playbook, Strategy’s shares dropped by over 7%.

Strategy’s Biggest Bitcoin Buy Since 2024

On Tuesday, Strategy introduced the acquisition of twenty-two,305 Bitcoin for approximately $2.13 billion, bringing its whole Bitcoin holdings to 709,715.

The transaction, which was carried out on Monday, marked Strategy’s largest Bitcoin buy since November 2024. It additionally adopted two further acquisitions accomplished earlier in January, reaffirming the corporate’s continued dedication to increasing its Bitcoin treasury.

Despite the dimensions of the newest buy, market response remained muted. Similar to the acquisition introduced final Monday, the transfer failed to bolster investor confidence in Strategy’s long-term outlook. 

Over the previous 24 hours, the corporate’s shares declined 7.39%, with MSTR trading at $160.87 on the time of writing.

The firm’s method to timing its Bitcoin purchases has additionally drawn scrutiny.

Bitcoin Accumulation Continues Despite Market Weakness

According to Monday’s disclosure, Strategy paid a mean worth of $95,284 per Bitcoin. Yet on the identical day, Bitcoin was buying and selling close to $92,500 and briefly fell under $90,000 the next day.

The timing highlighted a recurring sample in which Strategy has didn’t capitalize on short-term worth declines. 

In December, BeInCrypto reported that the company spent nearly $1 billion to amass 10,624 Bitcoin. Although Bitcoin had dropped to round $86,000 on the time, Strategy executed the acquisition after the worth rebounded to roughly $90,615.

This method has raised ongoing questions concerning the firm’s entry-point strategy and its obvious willingness to build up Bitcoin at elevated worth ranges fairly than throughout market pullbacks. 

It has additionally achieved little to ease shareholder concerns about its broader capital allocation choices.

Despite a modest restoration over the previous month, Bitcoin has been unable to reclaim the $100,000 stage. At the identical time, rising analyst concerns about a potential bear market have heightened uncertainty concerning the asset’s near-term worth outlook.

Against this backdrop, Strategy has continued to press forward with its accumulation plan. 

While the method is meant to sign confidence in Bitcoin’s long-term prospects, it has to date achieved little to alleviate buyers’ short-term considerations.

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