Strategy’s Major Bitcoin Acquisition Amid Market Turbulence
Our editorial team, comprising leading industry specialists and experienced editors, ensures that all content is meticulously researched, factual, and unbiased.
Significant Bitcoin Acquisition by Strategy
In a significant development, Strategy has announced its latest acquisition of Bitcoin, marking its largest purchase in recent times. This bold move comes despite recent market downturns, demonstrating Strategy’s unwavering confidence in Bitcoin.
Advertisement Banner
Details of the Latest Bitcoin Purchase
Michael Saylor, Chairman of Strategy, recently shared an update on the company’s Bitcoin portfolio through a post on X. The update included the acquisition of an impressive 8,178 BTC, costing approximately $835.6 million. This purchase was funded through $136.1 million raised via the sale of the company’s STRF, STRC, and STRK at-the-market stock offerings, as per the US Securities and Exchange Commission (SEC) filing.
Despite a period of smaller acquisitions, this latest purchase represents a shift in Strategy’s buying pattern. The last time the company made such a significant purchase was on July 29th, when it acquired 21,021 BTC for $2.46 billion. Back then, market conditions were more favorable with Bitcoin reaching new highs.
Market Conditions and Strategy’s Bold Move
This acquisition comes at a time when the market is experiencing bearish trends, making Strategy’s decision particularly audacious. The purchase period spanned from November 10th to 16th, with an average acquisition price of $102,171 per Bitcoin. Currently, Bitcoin’s value has depreciated by over 8.5% from this average price.
Post-acquisition, Strategy’s Bitcoin reserves have reached a total of 649,870 BTC, with a total cost basis of $48.37 billion. The current valuation of their Bitcoin treasury is $60.6 billion, indicating a profit margin of 25%. Despite the recent downturn, Strategy remains resilient against further market declines.
Broader Market Trends
Strategy is not alone in its aggressive buying strategy. According to analyst James Van Straten, large holders have also been reducing distribution, as indicated by Glassnode’s Accumulation Trend Score. This score, which evaluates the buying and selling trends among Bitcoin investors, has been close to 1 for investors holding 100 to 1,000 BTC, suggesting strong accumulation by these “sharks.”
The behavior of “whales” (1,000 to 10,000 BTC holders) has been neutral, while “mega whales” (10,000+ BTC holders) have shifted from a phase of distribution to neutrality since August.
Current Bitcoin Price
At the moment, Bitcoin is trading at around $92,700, reflecting a decline of more than 12% over the past week. Despite the extended price drop, the strategic decisions by major holders indicate a persistent belief in Bitcoin’s long-term potential.
Data sourced from Glassnode and TradingView highlight these trends and market movements.
Commitment to Quality Content
Editorial Process: Our content creation process is dedicated to delivering well-researched, precise, and impartial information. We maintain strict sourcing protocols, and every piece undergoes thorough scrutiny by our team of top industry experts and seasoned editors. This rigorous process ensures the reliability, relevance, and value of our content for our audience.
