MicroStrategy’s $123K Bitcoin Bet Backfires as Market Plunges
MicroStrategy just bought the ultimate crypto dip—at the absolute worst possible moment.
The Timing Disaster
Michael Saylor's firm dropped millions on Bitcoin at $123,000 right before the market tanked. That's like buying beachfront property during a hurricane warning.
Corporate Strategy or Gambling?
While other companies hedge their bets, MicroStrategy keeps doubling down on crypto volatility. Their treasury strategy now looks more like a high-stakes poker game than sound financial planning.
Another day, another 'genius' move from the corporate traders who always seem to buy at peaks and sell at valleys. Maybe stick to software next time, guys.
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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 the price of 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.
