Strategy Inc. executed a substantial Bitcoin acquisition recently by converting proceeds from a sizable stock sale into cryptocurrency, affirming chairman Michael Saylor's 'Bigger Orange' initiative. Between January 12 and 19, the company sold shares amounting to approximately $2.1 billion and instantly applied those funds to purchase 22,305 Bitcoin. These acquisitions occurred at an average price of $95,284 per Bitcoin, representing a notable premium relative to the company's previous average purchase price and approximately 25% higher than its overall cost basis.
This premium pricing underlines Strategy Inc.'s commitment to acquiring Bitcoin even at elevated prices instead of awaiting market dips, continuing a strategic pattern adopted since 2020. The firm's aggressive approach to accumulating Bitcoin reflects confidence in the cryptocurrency's long-term value and its role within the company's asset composition.
As of January 19, Strategy Inc.'s Bitcoin holdings have reached an impressive 709,715 BTC, positioning the company among the largest corporate custodians of Bitcoin worldwide. To amass this substantial digital asset reserve, Strategy Inc. has cumulatively invested approximately $53.92 billion, with an average purchase price hovering around $75,979 per Bitcoin across all acquisitions.
The month of January alone has seen the company undertake three significant Bitcoin transactions totaling over $2.5 billion, as outlined below:
- January 4: Acquisition of 1,283 BTC valued at $115.97 million
- January 11: Purchase of 13,627 BTC for $1.25 billion
- January 12-19: Procurement of 22,305 BTC totaling $2.13 billion
This pattern of cryptocurrency acquisition follows a similar playbook recently indicated by Michael Saylor. On Saturday prior to the announced purchase, Saylor posted a chart on the social platform X displaying Bitcoin price movements layered with Strategy Inc.'s purchase timings under the phrase "Bigger Orange." This cryptic but consistent messaging style serves as a prelude to forthcoming Bitcoin buys. True to form, the company filed an 8-K on the subsequent day confirming the capital raise and the rapid Bitcoin purchase.
To finance the latest Bitcoin purchase, Strategy Inc. executed sales of two types of securities during the week. Firstly, it sold roughly 2.95 million shares of its Variable Rate Series A Perpetual Stretch Preferred Stock (ticker: STRC), netting approximately $294.3 million after fees. The majority of funding was acquired through the disposition of Class A common stock, with over 10.4 million shares of MSTR changing hands and generating $1.83 billion net of fees and commissions.
Combining these transactions, the company's stock sales yielded around $2.125 billion, funds that were immediately deployed to increase Bitcoin holdings.
Market performance of Strategy Inc. shares (MSTR) shows a decline of approximately 7% to $160, testing a critical technical support zone that has been revisited multiple times. From a high of $473 in July, the stock has experienced a stark downturn of over 60% but currently appears to be forming a potential double-bottom pattern around the present trading levels, a technical formation often noted for signaling a possible reversal.
Despite this pattern, MSTR remains below all key moving averages, including the 20-day at $168.01, 50-day at $191.09, 100-day at $233.53, and 200-day at $268.57. The Supertrend indicator, a significant technical resistance marker, sits at $181.47. For the stock to signify a trend reversal, it would need to break above this threshold.
Key technical levels to watch include:
- First resistance: $181.47 (Supertrend indicator)
- Major resistance: $191.09 (50-day moving average), followed by psychological resistance near the $200 level
- Potential breakdown trigger: A sustained drop below $164.90 could open the door to declines toward $150-155 and potentially $120-130
Notably, there has been an observable series of higher lows since December, which may indicate a weakening of selling pressure. However, confirmation of a bullish trend shift requires the stock to recapture and hold above the Supertrend level.