So much for buying the dip. Strategy (MSTR), the software firm turned serial cryptocurrency acquirer, bought Bitcoin (BTC) at $123,000 right before the price crashed to nearly $100,000 per digital token.
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According to regulatory filings, Strategy bought 220 Bitcoin at an average price of $123,561 right before the market swooned on Oct. 10, sending BTC as low as $103,000. The company ended up paying $27.18 million for its latest Bitcoin acquisition.
Less than a day after Strategy’s most recent BTC purchase, the price of the largest cryptocurrency fell sharply in what’s being called the worst flash crash for digital assets on record. Nearly $20 billion in leveraged positions were wiped out on Oct. 10, according to market data.
Market Timing
Crypto crashed alongside stocks after U.S. President Donald Trump said he would impose a 100% tariff on Chinese goods in retaliation for the Asian superpower tightening rare earth metal exports, reigniting fears of an all-out trade war between the world’s two biggest economies.
At its lowest point on Oct. 10, BTC traded about 15% below the average of Strategy’s recent purchase price. Even during the current rebound, Strategy could have bought Bitcoin for between $110,000 and $115,000, a 7% to 10% discount compared to its latest purchase.
Strategy now owns 640,250 Bitcoin at an average price of $73,000. The company began acquiring Bitcoin in 2020.
Is Bitcoin a Buy?
Most analysts don’t offer ratings or price targets on Bitcoin. So instead, we’ll look at the three-month performance of BTC. As one can see in the chart below, the price of Bitcoin has fallen 2.21% in the last 12 weeks.
