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MicroStrategy Adds $90M in Bitcoin Despite Price Dip
Michael Saylor’s MicroStrategy — the largest public corporate holder of Bitcoin — disclosed another BTC purchase last week, adding 1,142 BTC for approximately $90 million. The transactions, revealed in a US Securities and Exchange Commission filing on Monday, came at an average price of $78,815 per BTC, even as Bitcoin traded well below that level through much of the week.
Acquisition details and impact on cost basis
By buying at roughly $79,000 per coin, MicroStrategy did not reduce the company’s existing average cost basis. After this tranche, the firm’s total holdings stood at 714,644 BTC, acquired for about $54.35 billion and reflecting an average price of $76,056 per BTC. That means the latest purchase actually sits above MicroStrategy’s long-term average acquisition price.
Market context: BTC price action and missed dip
Bitcoin’s price plunged briefly to near $60,000 on Coinbase last Thursday and remained below the company’s average purchase price for most of the week. In the days around the buy, BTC dropped under $78,000 and failed to reclaim the $72,000 level, highlighting that the company bought while the market was trading below its own weighted cost basis.
Bitcoin price versus Strategy’s average purchase price.
This is the second time in the current cycle that MicroStrategy has purchased bitcoin while the spot price traded under its average cost. The situation mirrors 2022, when MicroStrategy slowed larger buys after BTC slipped under $30,000 while its average purchase price was near $30,600. Even then, the company continued to add BTC in smaller increments, demonstrating a commitment to long-term accumulation despite unrealized drawdowns.
Investor sentiment and stock reaction
The optics of buying above one’s cost basis can draw scrutiny from investors focused on short-term unrealized losses. Ahead of the filing, some market participants speculated that MicroStrategy might avoid purchases above its average price to reduce headline risk. Others poked fun at the timing; one social media quip imagined a future announcement at far higher average prices.
MicroStrategy’s stock (MSTR) tracked Bitcoin’s volatility closely during the move. The shares slid to roughly $107 last Thursday then rallied alongside a market uptick, jumping about 26% to close near $135 on Friday, reflecting heightened trader activity and short-covering in the wake of crypto’s rebound.
What this means for institutional Bitcoin demand
MicroStrategy’s continued accumulation underscores persistent institutional appetite for BTC as a reserve-like asset, even when purchases do not immediately lower the acquirer’s overall cost basis. For Bitcoin markets, large corporate buys continue to signal conviction from a major public holder, potentially influencing sentiment among other institutional and retail investors.
Source: cointelegraph
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