Strategy (formerly MicroStrategy) made its largest Bitcoin purchase since November 2024, just one day before the Bitcoin price fell below the $90,000 mark.
Despite the ongoing commitment to the aggressive purchasing strategy, Strategy's shares fell by more than 7%.
Largest Bitcoin purchase by Strategy since 2024
On Tuesday, Strategy announced that it had purchased 22,305 Bitcoin for approximately $2.13 billion. This brings the company's total Bitcoin count to 709,715.
The transaction took place on Monday and was the largest Bitcoin purchase by Strategy since November 2024. Earlier in January, two purchases were also made, showing that the company is committed to further expanding its Bitcoin holdings.
Despite this substantial purchase, the market's reaction was limited. Just like with the previous announcement, Strategy failed to strengthen investors' confidence in the long-term outlook of the company.
In the past 24 hours, the company's shares fell by 7.39%. At the time of writing, MSTR was trading at $160.87.
The way the company chooses the right moment for its Bitcoin purchases is also being critically examined.
According to Monday's report, Strategy paid an average of $95,284 per Bitcoin. Yet Bitcoin was around $92,500 that day and even briefly fell below $90,000 the next day.
It shows again that Strategy often fails to capitalize on short-term price declines.
In December, BeInCrypto reported that the company spent nearly $1 billion on 10,624 Bitcoin. At that time, Bitcoin had fallen to about $86,000, but Strategy only bought after the price recovered to around $90,615.
This approach has long raised questions about the company's entry strategy and its willingness to buy Bitcoin at high prices instead of during market downturns.
This approach hardly helps to alleviate shareholders' concerns about how Strategy allocates capital.
Despite a slight recovery last month, Bitcoin has not managed to regain the $100,000 level. At the same time, analysts' concerns about a potential bear market are increasing, adding more uncertainty to short-term price expectations.
Nevertheless, Strategy remains committed to the plan of buying more Bitcoin.
Although this approach is intended to show confidence in the long-term future of Bitcoin, it offers little reassurance to short-term investors.