Strategy Inc. recently augmented its Bitcoin reserves by purchasing 2,932 coins for approximately $264.1 million. This acquisition, priced at an average of $90,061 per Bitcoin, is notably higher than the firm's average holding cost of $76,037 across its entire Bitcoin inventory, which now totals 712,647 BTC.
To facilitate this sizable investment, Strategy Inc. executed at-the-market (ATM) offerings, divesting 1,569,770 shares of its Class A common stock valued at $257 million and an additional 70,201 shares of STRC preferred stock worth $7 million. These equity sales provide the capital injection needed for expanding the digital asset portfolio without tapping into other financing mechanisms.
Currently, the total Bitcoin holdings under Strategy Inc.'s management are valued near $62.5 billion considering prevailing cryptocurrency prices, reflecting a paper gain of roughly $8.3 billion over the original cumulative purchase amount of $54.2 billion including transaction fees. The company's Bitcoin stake represents approximately 3.4% of the total 21 million Bitcoin supply.
Moreover, Strategy Inc. maintains considerable capacity for further Bitcoin acquisitions, with its ATM program still authorizing the sale of up to $8.17 billion worth of MSTR shares and an additional $3.62 billion in STRC shares. This reserve suggests continued opportunistic buying could be anticipated as market conditions evolve.
Significantly, Michael Saylor, serving as the executive chairman of Strategy Inc., provided subtle indications of the purchase activity on social media platforms. Notably, his weekend post referencing “Unstoppable Orange” and an earlier message the prior Thursday hinting at plans to buy more Bitcoin illustrate the company's commitment pattern toward digital asset accumulation. Weekly Bitcoin purchases have become a routine strategy, with weekend announcements serving as typical markers for acquisition confirmation, although Thursday’s post marked a deviation in timing.
Turning to the equity market performance, the company's stock symbol MSTR closed at $163.11 on the preceding Friday, reflecting a 1.32% increase. However, during Monday's market opening, the share price receded, challenging the pivotal $160 support threshold which has been in place since December. This price level has acted as a floor after the stock experienced a substantial decline from its July peak of $473, plummeting 65% to a low near $160.41 in December.
Since that low, MSTR has demonstrated a consolidation phase within a tightly constrained price range between $160 and $180, forming what technical analysts identify as a triple-bottom pattern near the $160 support level. This configuration implies repeated testing of this price floor, offering insights into potential future movements depending on whether the support holds or breaks.
Additional technical indicators shed light on the stock’s challenges. All exponential moving averages (EMAs) — including the 20-day at $166.06, 50-day at $186.80, 100-day at $228.03, and 200-day at $264.39 — are arranged in a manner consistent with bearish market sentiment, with the stock price currently positioned just above these declining averages. The Supertrend indicator is locked firmly in bearish territory at $181.47, reinforcing downward pressure.
Overlaying this bearish context is a descending trendline traced from summer highs, exerting resistance in the price zone of $200 to $220, thereby presenting an additional hurdle for recovery. Should MSTR fail to regain momentum above critical levels, the outlook remains subdued.
Key price levels to monitor include an initial upside threshold at $163.11—the prior Friday close. Surpassing this level is essential before attempting to break resistance at the 20-day EMA of $166.06. Beyond that, clearing the Supertrend at $181.47 becomes crucial. Further advances would target the 50-day EMA at $186.80 and subsequently the $200 price level. Should these be exceeded, the 100-day EMA of $228.03 could come into play as a longer-term target.
Conversely, on the downside, the market is testing the $160.41 support with a premarket level reported at $160.60. A confirmed break below $160 could negate the triple-bottom setup and trigger a decline toward a $150 to $155 range. Failure to hold within that band might propel shares lower, potentially targeting $120 to $130.