Key Points
- Strategy Inc. has purchased an additional 220 Bitcoin, bringing its total holdings to 640,250.
- The acquisition took place during a period of significant market volatility.
Strategy Inc., the top corporate owner of Bitcoin, has expanded its holdings. The company acquired an additional 220 Bitcoin, costing $27.2 million in cash. This purchase increases the company’s total treasury to a significant 640,250 Bitcoin.
The acquisition occurred between October 6 and 12. Strategy Inc. detailed the purchase in a press release published on October 13. The company used funds from its at-the-market (ATM) stock offerings, which raised net proceeds of $27.3 million. This latest purchase underscores Strategy’s long-standing method of leveraging capital markets to systematically increase its Bitcoin reserves.
Buying Amid Market Volatility
Strategy’s decision to buy comes amidst considerable market stress. The purchase follows a period of intense volatility in the crypto market, marked by extreme price movements that led to widespread deleveraging and a historic liquidation event.
On October 11, the crypto market experienced a record $19.35 billion liquidation. This sharp decline, which saw Bitcoin’s price drop from $121,560 to below $103,000, was partly attributed to US President Donald Trump’s announcement of potential 100% tariffs on Chinese imports.
The company’s purchase price for this latest batch averaged approximately $123,561 per Bitcoin, a figure considerably higher than its overall average cost of $74,000 per coin. Despite the recent crypto crash and pervasive market-wide panic, Strategy demonstrated an unwavering commitment to its accumulation strategy.
This decision highlights a significant divergence between institutional long-term conviction and short-term market sentiment. MARA Holdings, another corporate entity, also acquired 400 Bitcoin for $46.31 million during this downturn, indicating a broader trend among some corporate treasuries to buy Bitcoin amid volatility.
Market Reaction and Price Analysis
The broader market responded cautiously to the news, reflecting the deep division between long-term accumulators and short-term traders. Following the announcement, Bitcoin’s price remained largely range-bound, trading between $113,800 and $114,400. This tight consolidation indicates significant market indecision.
While corporate purchases offer some support, strong selling pressure persists. On-chain data revealed that a prominent whale connected with the recent 19B liquidation has increased their short position to over $200 million, betting on further price declines.
Technical indicators show Bitcoin in a delicate balance. On higher timeframes, momentum indicators like the MACD suggest the intense selling pressure is beginning to ease, but the price remains below key moving averages, indicating the bearish trend is still intact. The immediate support level is in the $112,000 to $110,000 range, while significant resistance lies at the $116,500 mark. A decisive break in either direction is needed to establish a clear trend.
Strategy Inc. as a Bitcoin Exposure Proxy
Strategy’s unique corporate treasury strategy makes it a proxy for Bitcoin exposure in traditional equity markets. It attracts investors seeking to gain access to the digital asset without holding it directly. The firm has pioneered the use of diverse financial instruments, including multiple series of preferred stock and class A common stock, to fund its ongoing purchases. This financial engineering allows it to continuously raise capital but also exposes its balance sheet directly to Bitcoin’s infamous price swings.
As the leading Bitcoin Treasury Company, Strategy’s actions are closely watched, serving as a barometer for corporate interest in digital assets. With its latest acquisition, the company has further solidified its position, betting that its massive crypto treasury will drive long-term value for its shareholders. The consistent buying, funded through public offerings, has become a core part of its identity in both the tech and financial worlds.
