MicroStrategy Purchases 357 Million In Bitcoin As Price Falls To 112K
According to Cointelegraph, MicroStrategy acquired 3,081 Bitcoin for $356.9 million during the week ending Sunday. The business intelligence company purchased the Bitcoin batch at an average price of $115,829 per coin. Bitcoin started the week around $116,700 before sliding to $112,000 on Thursday.
The acquisition brings Strategy's total Bitcoin holdings to 632,457 BTC. The company has spent approximately $46.5 billion on its Bitcoin collection at an average price of $73,527 per coin. Strategy's latest Bitcoin acquisition came after two modest purchases earlier in August, including a 430 BTC purchase and a 155 BTC buy the previous week.
August's total Bitcoin purchases reached 3,666 BTC. This represents a sharp decline from the 31,466 BTC purchased in July. The company's BTC yield reached 25.4% as of Monday, representing the percentage change in the ratio between Bitcoin holdings and diluted shares outstanding.
Corporate Treasury Strategy Gains Momentum
The purchase demonstrates Strategy's continued commitment to Bitcoin accumulation despite price volatility. Strategy revised its 2025 Bitcoin targets in late July, raising the BTC yield target from 25% to 30%. The Bitcoin gain target increased from $15 billion to $20 billion. Current year-to-date Bitcoin gains stand at 113,524 BTC according to official reported data.
Crypto.com reports that by 2025, public corporations collectively hold 961,700 Bitcoin valued at $110 billion. Companies like Strategy have demonstrated Bitcoin's viability as a treasury asset. The regulatory environment has improved with clearer accounting rules and the Trump administration's progress on cryptocurrency frameworks.
We previously covered how Bitcoin's fixed supply makes it an attractive reserve asset, as nations face mounting pressure to maintain monetary stability against currency devaluation. Our analysis showed that Bitcoin's mathematically enforced scarcity of 21 million coins provides clear advantages over fiat currencies subject to changing monetary policies.
Market Impact on Institutional Adoption
Strategy's purchase occurred during a period of market correction that saw Bitcoin briefly test the $112,000 support level. The timing reflects institutional investors' approach to Bitcoin as a long-term store of value rather than a short-term trading asset. Corporate adoption of Bitcoin has evolved from speculative investments to strategic treasury management.
Parameter notes that MicroStrategy's current Bitcoin holdings are valued at roughly $70.6 billion. The company's stock declined 4.3% to $342.86 on Monday, mirroring Bitcoin's price movement despite the purchase announcement. Other crypto-related stocks also fell, with Coinbase shares dropping 2.8%.
The broader market correction has been attributed to profit-taking activity and macroeconomic uncertainty. Bitcoin's correlation with traditional risk assets has increased as institutional adoption grows. However, the consistent corporate buying during price dips suggests institutional confidence in Bitcoin's long-term value proposition remains strong.
The trend extends beyond Strategy, with companies across various sectors integrating Bitcoin into their balance sheets. This institutional demand creates a new source of buying pressure that is less sensitive to short-term price volatility. Corporate adoption reduces Bitcoin's available supply while providing legitimacy as an institutional asset class.
