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 beneath 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 complete 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 extra acquisitions accomplished earlier in January, reaffirming the corporate’s continued dedication to increasing its Bitcoin treasury.
Despite the size of the most recent 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 strategy to timing its Bitcoin purchases has additionally drawn scrutiny.
Bitcoin Accumulation Continues Despite Market Weakness
According to Monday’s disclosure, Strategy paid a median worth of $95,284 per Bitcoin. Yet on the identical day, Bitcoin was buying and selling close to $92,500 and briefly fell beneath $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 strategy has raised ongoing questions concerning the firm’s entry-point strategy and its obvious willingness to build up Bitcoin at elevated worth ranges somewhat than throughout market pullbacks.
It has additionally finished 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 degree. 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 strategy is meant to sign confidence in Bitcoin’s long-term prospects, it has thus far finished little to alleviate buyers’ short-term considerations.
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