Strategy (formerly MicroStrategy) announced on Monday that it has spent $1.25 billion on the purchase of 13,627 Bitcoin, the largest purchase in six months. With multiple recent purchases around $88,000 and $92,000, this range is increasingly seen as an important psychological support level for investor sentiment.
If Bitcoin clearly drops below this range, MSTR faces a greater risk of short-term decline, as investor sentiment weakens and the stock's valuation premium shrinks.
Purchasing pattern sets market benchmark for MSTR
After Strategy’s latest purchase, the company’s Bitcoin reserves have increased to 687,410 BTC. Following the announcement, the company’s share remained largely stable. As of this writing, MSTR was trading around $162.
Since December, Strategy has made seven separate Bitcoin purchases. The average price per Bitcoin varied slightly, ranging from lows around $88,210 to highs near $92,098.
These ongoing purchases around the same level form an anchor point for traders. The small price variations serve as reference points for future purchases.
Therefore, investors will likely pay close attention to whether Strategy continues buying within this range. A clear drop below this level could put pressure on sentiment and keep MSTR shares volatile for now.
Premium compression tests investor conviction
Strategy’s share often moves more strongly with Bitcoin because investors see it as a leveraged instrument to gain BTC exposure, rather than a traditional software company. The company’s financing approach strengthens this effect.
Strategy continues to use equity issuance to buy more Bitcoin. This method works well when the share trades at a premium, but becomes more difficult as that premium shrinks.
In the past, the company has made purchases below $88,000, the lowest level currently being bought. A prolonged drop below this level would not immediately obligate Strategy to sell Bitcoin, but it could shift the narrative in the market.
Shareholders may then view the recent purchasing policy less as disciplined accumulation and more as buying near a price range that traders believe is difficult for Bitcoin to break through. This could weigh on sentiment and reduce the share's premium relative to Bitcoin reserves.
This premium is important because it influences how investors assess the risk of share dilution.
If MSTR underperforms Bitcoin, raising new capital becomes less attractive for existing shareholders. In that case, the market may reassess Strategy’s buying pace and sensitivity to Bitcoin price levels.
In practice, this can lead to greater fluctuations in MSTR. This risk is highest when Bitcoin is trading near recent lows or moving through well-known technical levels.
