MicroStrategy (MSTR), the leading corporate holder of Bitcoin (BTC), purchased 220 BTC at an average price of $123,561 just before last week's significant cryptocurrency market downturn. The company funded this $27.3 million acquisition through proceeds from selling its preferred stock series.
The timing proved challenging as Bitcoin subsequently experienced one of the most severe flash crashes in history, plummeting from over $123,000 to approximately $103,000 within days. This represented a 16% decline below MicroStrategy's purchase price, with the cryptocurrency trading at 7-10% discounts during the weekend recovery phase.
The market volatility was partially triggered by renewed trade war concerns after former President Trump proposed doubling tariffs on Chinese goods. Despite the timing, MicroStrategy continues expanding its Bitcoin treasury, now holding 640,250 BTC with an average acquisition cost of $73,000 since initiating its digital asset strategy in 2020.
MSTR shares demonstrated resilience, closing 2.5% higher on Monday following the announcement.