Strategy (formerly MicroStrategy) launched its largest Bitcoin purchase action since November 2024 just before the Bitcoin price fell below the 90,000 USD mark.
Although the company continues to follow its plan to buy a lot of Bitcoin, the stock price of Strategy has fallen by more than seven percent.
Strategy's largest Bitcoin purchase since 2024
On Tuesday, Strategy announced that it had purchased 22,305 Bitcoins for approximately 2.13 billion USD. As a result, the company now holds a total of 709,715 Bitcoins.
The purchase took place on Monday and is the largest Bitcoin purchase by the company since November 2024. Already in January, Strategy made two more purchases. This shows that the company remains determined to increase its Bitcoin holdings.
Despite this large purchase, the market reaction remained calm. As with the last purchase the previous Monday, the action could not strengthen investors' confidence in the future of Strategy.
In the last 24 hours, the company's stock price has fallen by 7.39 percent. MSTR was trading at 160.87 USD at the time of the article.
The timing of Strategy's Bitcoin purchases is also being critically questioned.
According to the report from Monday, Strategy paid an average of 95,284 USD per Bitcoin. On the same day, the Bitcoin price was around 92,500 USD and briefly fell below the 90,000 USD mark the next day.
This timing shows a pattern: Strategy often misses favorable price declines and does not buy at the lowest prices.
In December, BeInCrypto reported that the company spent nearly 1 billion USD for 10,624 Bitcoin. At that time, the Bitcoin price had fallen to around 86,000 USD, but Strategy only bought after the rise to about 90,615 USD.
This strategy repeatedly raises questions about the company's purchasing strategy. Apparently, Strategy is willing to buy Bitcoin at higher prices rather than taking advantage of pullbacks.
This has hardly alleviated investors' concerns about the company's general decisions regarding capital allocation.
Although the Bitcoin price has recovered somewhat in the last month, the cryptocurrency has not managed to return above the 100,000 USD mark. At the same time, analysts' concerns about a possible downturn are growing. This uncertainty weighs on expectations for the Bitcoin price in the near future.
Nevertheless, Strategy is pursuing its plan to continue buying Bitcoin.
The strategy is supposed to show that the company believes in the future of Bitcoin. In the short term, this hardly reassures investors.
