Key Notes
- Strategy Inc.
- spent $27.2 million to acquire 220 BTC at an average price of over $123,000 per coin.
- The company now holds a total of 640,250 BTC, purchased for an aggregate cost of $47.38 billion.
- The purchase was funded by selling preferred stock, reinforcing its strategy of using capital markets to buy Bitcoin.
Strategy Inc., the largest corporate holder of
BTC
$114 552
24h volatility:
1.2%
Market cap:
$2.28 T
Vol. 24h:
$94.47 B
, has once again increased its holdings, purchasing an additional 220 coins for $27.2 million in cash. The acquisition brings the company’s total treasury to a substantial 640,250 Bitcoin.
The purchase, which took place between October 6 and 12, was detailed in a press release published on October 13 by Strategy Inc. The funds were generated from the company’s at-the-market (ATM) stock offerings, which raised net proceeds of $27.3 million. This latest buy reinforces Strategy’s long-standing approach of leveraging capital markets to systematically build its Bitcoin reserves.
Accumulating During Market Instability
Strategy’s decision to buy comes at a time of significant market stress. The acquisition follows a period of intense volatility in the crypto market, where extreme price movements triggered widespread deleveraging and a historic liquidation event.
On October 11, the crypto market saw a record $19.35 billion liquidation, primarily driven by long positions, according to Coinspeaker. This sharp decline, which saw Bitcoin’s price fall from $121,560 to below $103,000, was partly attributed to US President Donald Trump’s announcement of potential 100% tariffs on Chinese imports.
The company’s purchase price for this latest batch averaged approximately $123,561 per Bitcoin, a figure considerably higher than its overall average cost of $74,000 per coin. Despite the recent crypto crash and pervasive market-wide panic, Strategy demonstrated an unwavering commitment to its accumulation strategy.
This move highlights a major divergence between institutional long-term conviction and short-term market sentiment. MARA Holdings, another corporate entity, also acquired 400 Bitcoin for $46.31 million during this downturn, signaling a broader trend among some corporate treasuries to buy Bitcoin amid volatility.
Market Reaction and Price Analysis
Source: TradingView
The broader market reacted to the news with caution, reflecting the deep division between long-term accumulators and short-term traders. Following the announcement, Bitcoin’s price remained largely range-bound, trading between $113,800 and $114,400. This tight consolidation signals significant market indecision.
While corporate buys offer some support, strong selling pressure persists. On-chain data revealed that a prominent whale connected with the recent 19B liquidation has increased their short position to over $200 million, betting on further price declines.
Technical indicators show Bitcoin in a delicate balance. On higher timeframes, momentum indicators like the MACD suggest the intense selling pressure is beginning to ease, but the price remains below key moving averages, indicating the bearish trend is still intact. The immediate support level is in the $112,000 to $110,000 range, while significant resistance lies at the $116,500 mark. A decisive break in either direction is needed to establish a clear trend.
Proxy for Bitcoin Exposure
Strategy’s unique corporate treasury strategy makes it a proxy for Bitcoin exposure in traditional equity markets. It attracts investors seeking to gain access to the digital asset without holding it directly. The firm has pioneered the use of diverse financial instruments, including multiple series of preferred stock and class A common stock, to fund its ongoing purchases. This financial engineering allows it to continuously raise capital but also exposes its balance sheet directly to Bitcoin’s infamous price swings.
As the leading Bitcoin Treasury Company, Strategy’s actions are closely watched, serving as a barometer for corporate interest in digital assets. With its latest acquisition, the company has further solidified its position, betting that its massive crypto treasury will drive long-term value for its shareholders. The consistent buying, funded through public offerings, has become a core part of its identity in both the tech and financial worlds.
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Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
As a Web3 marketing strategist and former CMO of DuckDAO, Zoran Spirkovski translates complex crypto concepts into compelling narratives that drive growth. With a background in crypto journalism, he excels in developing go-to-market strategies for DeFi, L2, and GameFi projects.
Zoran Spirkovski on X
Source: https://www.coinspeaker.com/strategy-inc-adds-220-btc-chaos/
