Bitcoin Bet Backfires: Strategy’s Recent Purchase Coincides With Market Plunge

Strategy Inc., the company formerly known as MicroStrategy, has once again demonstrated its commitment to Bitcoin, though its latest acquisition appears poorly timed. The firm, often dubbed the “Bitcoin king” of corporate holdings, purchased an additional 220 Bitcoin on October 13th for $27.3 million, paying an average of $123,561 per coin. This transaction occurred just days before the cryptocurrency’s value tumbled from over $123,000 to a low of $103,000, raising questions about the company’s market timing.

A Massive Treasury Weathers the Storm

Despite the recent price volatility, Strategy’s commitment to accumulating Bitcoin remains unwavering. This latest purchase brings the company’s total holdings to 640,250 BTC. The total acquisition cost for this massive portfolio stands at $47.38 billion, resulting in an average purchase price of $74,000 per Bitcoin—a figure that provides some cushion against current market swings but also highlights the premium paid in the recent transaction.

The capital for the October 13th acquisition was generated through three separate preferred stock initiatives:
– The STRF program contributed $19.8 million from share sales.
– The STRK program provided $1.7 million.
– An additional $5.8 million was raised via the STRD program.

Billions Liquidated in Sharp Correction

The proximity of Strategy’s purchase to a significant market downturn adds a layer of intrigue to the event. The swift descent from over $123,000 to $103,000 triggered a liquidation of leveraged positions exceeding $19 billion in value. This event serves as a stress test for the company’s aggressive business model, which has fully embraced Bitcoin as its primary treasury asset.

Should investors sell immediately? Or is it worth buying MicroStrategy?

Strategy maintains substantial financial reserves to continue its acquisition strategy. With five active at-the-market (ATM) offering programs, the company has access to over $46 billion in available capital for future Bitcoin purchases. The breakdown of this war chest includes $15.9 billion allocated for common stock and a further $20.4 billion for preferred share offerings.

From Software to Bitcoin Treasury

The company completed a fundamental transformation in August 2025, officially rebranding from MicroStrategy to Strategy Inc. and shifting its core identity from a software provider to a “Bitcoin Treasury Company.” While it continues to offer analytics software, this is now a secondary operation. This radical pivot effectively positions the company as a leveraged Bitcoin ETF, concentrating its fortunes directly to the cryptocurrency’s performance and exposing it to the associated volatility and potential rewards.

All eyes are now on the company’s upcoming quarterly report, scheduled for release on October 30th. This financial disclosure is expected to provide critical insight into how the recent market turbulence and the company’s substantial Bitcoin investments have impacted its overall financial health. Given the dramatic price movements, the earnings call is likely to generate significant discussion among investors and analysts.