Strategy (NASDAQ:MSTR), formerly known as MicroStrategy, purchased 220 bitcoins during the 6th October to 12th October period at an average buying price of $123,561 per token. The largest corporate holder of bitcoin now owns 640,250 tokens acquired at an average price of $74,000.
The company raised $27.2 million from its at-the-market offering programs related to this perpetual stride preferred stocks to make the latest purchase. Michael Saylor-founded Strategy’s latest bitcoin buy came right before bitcoin crashed to under $110,000 (£82,466) after US President Donald Trump imposed 100% tariffs on ‘any and all critical software’ from China.
Top cryptocurrencies fell sharply amid the major liquidation event. Bloomberg data revealed that over $19 billion (£14.2 billion) in crypto bets were wiped out within 24 hours following Trump’s announcement. Furthermore, $400 billion (£299.8 billion) was wiped off the value of the crypto market as crypto investors engaged in panic selling, according to multiple media reports.
Yesterday, Bitcoin prices climbed back to $115,000 (£86,600) amid hopes that US-China trade tensions would de-escalate. ‘Don’t worry about China,’ Trump wrote on Truth Social on Sunday, after his announcement on tariffs triggered a massive crypto sell-off.
Strategy shares also climbed 3.5% on Monday on Trump downplaying the volatility over the weekend. ‘No tariffs on Bitcoin,’ Saylor wrote on X last Friday.
Strategy shares are up 48% in the past one year, and the company’s BTC yield year-to-date is around 26%. The firm reported $3.9 billion (£2.9 billion) in total Bitcoin fair value appreciation in Q3 of this year.
In September, Strategy purchased thousands of Bitcoins across several trades. On 29th September, the Bitcoin treasury company bought 196 BTCs for $22.1 million (£16.6 million). In the week prior, Strategy splurged $99.7 million (£75 million) to acquire 850 Bitcoins.
In mid-September, Saylor’s firm purchased another 525 BTC for $60.1 million (£45.2 million). However, the largest transactions in September involved the acquisition of 1,954.84 tokens on 8th September for $217.3 million (£163.6 million) and a whopping 4,048.52 BTCs for $449.3 million (£338.3 million) on 2nd September.
Strategy’s unwavering commitment to Bitcoin accumulation makes it the primary public markets vehicle for institutional Bitcoin exposure. Several experts also forecast a robust rally in Strategy shares if BTC continues to rally as market interest shifts towards digital assets.
Most analysts polled by TipRanks had a ‘buy’ rating on the MSTR stock with an average 12-month stock price target of $562.62 (£423.68) per share, implying an upside of over 78% from current trading levels. The highest price target was $705 (£530.9) per share, while the lowest was $175 (£131.78).
Many investors who are thinking of buying the Strategy stock believe the company can offer equity-level exposure to Bitcoin while retaining relevance in enterprise software and AI. However, the company’s aggressive capital raises to buy BTC have led to investor scrutiny, particularly as the costs of dividends and potential common share dilution speed up. This scenario could drive share price volatility at a time when Strategy trades at a premium closer to the underlying value of its crypto holdings than before.
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