In a significant move in the cryptocurrency market, Strategy (NASDAQ:MSTR) has announced the purchase of 592 Bitcoin (CRYPTO: BTC) valued at approximately $39.8 million, marking its 100th acquisition milestone since it began buying Bitcoin in August 2020. This recent purchase comes despite the company facing a staggering $7 billion in unrealized losses.
The transaction was financed through the sale of 297,940 shares of common stock between February 17 and 22, generating net proceeds of $39.7 million, which was wholly allocated to acquire the new Bitcoin. The average price of this latest purchase was reported at $67,286 per coin. With this acquisition, Strategy’s total Bitcoin holdings now amount to 717,722 BTC, acquired for a total cost of $54.56 billion at an average price of $76,020 per Bitcoin.
Currently, with the market price of Bitcoin just above $66,000, Strategy is grappling with an unrealized loss of approximately $10,000 per coin, contributing to an overall loss of about $7 billion. Executive Chairman Michael Saylor marked this milestone with a lighthearted post on X, reinforcing his commitment to the company’s Bitcoin acquisition strategy despite the paper losses.
The company has significant capital-raising potential with $7.84 billion available through its common stock Automatic Teller Machine (ATM) facility, along with additional capital from various perpetual preferred stock series. This financial flexibility suggests that the company plans to continue its Bitcoin purchasing strategy irrespective of the cryptocurrency’s price fluctuations.
In terms of stock performance, MSTR has experienced a downturn, trading 3% lower and sitting about 47% below its 200-day Exponential Moving Average (EMA), currently at $240.97. The significant disparity between current trading and historic EMAs highlights the severity of market conditions. Furthermore, key support levels that had been established between $155 and $165 have now turned into resistance after previously holding steady. The next notable support is found at the $105-$110 range, which is only 20% above the current price and has shown vulnerability as recent declines continue to exert selling pressure.
With MSTR currently trapped in a precarious trading range between $120 and $140, momentum toward a significant rebound appears limited. Analysts caution that should the stock dip below $120 on a daily closing basis, it could quickly accelerate downward, potentially retesting the $105-$110 support level. If that support fails, the company may enter a phase of substantial price discovery, with subsequent support levels possibly falling to $90 and even $75 or lower.
As investors remain cautious in a volatile environment, the diversity of opportunities in the investment market—ranging from real estate to emerging technologies—has become an appealing approach to managing risk and fostering sustained growth. Various platforms now allow investors access to real estate, precious metals, tech innovations, and more, highlighting a trend toward more comprehensive investment strategies.
Overall, Strategy’s commitment to Bitcoin acquisition, even in the face of losses, speaks volumes about its long-term strategic vision in a turbulent market landscape.
