Strategy (MSTR), the largest corporate holder of bitcoin worldwide , seems to have missed the chance to take advantage of last week’s market downturn to acquire bitcoin at lower prices.
Based on a Monday press release, the company purchased 220 BTC at an average price of $123,561, utilizing proceeds from selling several preferred stocks (STRF, STRK, STRD), amounting to $27.3 million.
This purchase price was significantly higher than the trading prices observed for bitcoin later in the week. Bitcoin dropped from over $123,000 on Thursday to approximately $103,000 by late Friday, amidst one of the most severe flash crashes in crypto history, resulting in the liquidation of over $19 billion in leveraged positions.
This decline coincided with Trump’s announcement regarding a 100% tariff increase on Chinese goods in response to strict controls on rare earth metal exports, raising concerns about a potential trade conflict between the two nations.
At its lowest on Friday, BTC traded nearly 16% below the average price at which Strategy acquired it. Even during a quick recovery over the weekend, the firm could have acquired bitcoin between $110,000 and $115,000, representing a 7%-10% discount off its paid price.
With this latest acquisition, the company now holds a total of 640,250 BTC, with an average purchase price of $73,000 since initiating its bitcoin treasury strategy in 2020.
MSTR, the firm’s common stock, increased by 2.5% on Monday.
