MicroStrategy, operating as Strategy, purchased 220 Bitcoin at an average price of $123,561 just before a sharp market downturn. The firm raised $27.3 million through preferred stock sales to fund the acquisition, bringing its total holdings to 640,250 BTC. This move occurred as Bitcoin prices plummeted from over $123,000 to as low as $103,000 amid trade war fears.
Strategy, the world's largest corporate Bitcoin holder known as MicroStrategy (MSTR), announced on Monday the purchase of 220 BTC at an average price of $123,561. The company funded this acquisition by selling preferred stocks (STRF, STRK, STRD), raising $27.3 million. With this addition, Strategy's total Bitcoin holdings now reach 640,250 BTC, acquired at an average price of $73,000 since initiating its treasury strategy in 2020.
The timing of the purchase drew attention because it preceded a severe crypto market crash last week. Bitcoin traded above $123,000 on Thursday but nosedived to $103,000 by late Friday, marking one of the worst flash crashes on record. This drop liquidated over $19 billion in leveraged positions and saw prices fall nearly $20,000 in less than a day. The crash was triggered by former President Trump's announcement of a potential 100% tariff increase on Chinese goods in retaliation for tightened rare earth metal exports, reigniting U.S.-China trade war concerns.
At its lowest, Bitcoin traded 16% below Strategy's purchase price. Even during the weekend rebound, prices hovered between $110,000 and $115,000, offering a 7% to 10% discount compared to what Strategy paid. Despite missing the dip, MSTR stock rose 2.5% on Monday, reflecting investor confidence in the firm's long-term Bitcoin strategy.
This event highlights the volatility in crypto markets and how institutional players like Strategy continue to accumulate amid fluctuations, even at elevated prices.