MicroStrategy Makes $1 Billion Bitcoin Purchase Ahead of Market Correction

• MicroStrategy acquired 10,107 BTC  for $1.1 billion, raising its total holdings to 471,107 BTC worth $47 billion.
• Trading price fell below $100,000, with trading volume surging 222% and $850 million in derivatives liquidations.
• MicroStrategy manages $1.05 billion in debt while its stock dropped 14% amid market pressures from China’s DeepSeek AI emergence.

MicroStrategy co-founder Michael Saylor reported Monday that it has invested $1.1 billion to acquire 10,107 Bitcoin. The cryptocurrency was purchased at an average price of $105,596 per coin. Following the announcement, Bitcoin’s value dropped sharply. CoinGecko data revealed that it is currently trading at approximately $100,700 after hitting a low of $98,380 earlier in the day. This acquisition brings the company’s total Bitcoin holdings to 471,107, valued at over $47 billion.

Accelerated Bitcoin Buying Strategy

Since 2020 MicroStrategy has continued to purchase Bitcoin as part of its continuous strategy. MicroStrategy made weekly Bitcoin purchases during its latest 12-week period. 

Through its Bitcoin acquisitions MicroStrategy spent $30.4 billion paying $64,511 on average for each coin. MicroStrategy enacted its business acquisition strategy for Bitcoin as its long-term plan to distribute Bitcoin-related shares on the Nasdaq.

Bitcoin’s Price Correction and Market Activity

Bitcoin’s trading volume surged 222% on Monday, reaching $55.3 billion. The increased activity coincided with a market-wide drop, with Bitcoin losing 8.67% from its January 20 all-time high of $108,000. 

The cryptocurrency is now trading just below $99,000. Maelstrom Fund CIO Arthur Hayes has projected a further decline to $70,000 before a potential rally to $250,000 this year. Additionally, the derivatives market experienced forced liquidations amounting to $850 million.

Through decisive actions MicroStrategy controlled debt totals worth $1.05 billion related to its Bitcoin investment approach. Due to its Bitcoin investments MicroStrategy now holds the title of being the biggest corporate holder of Bitcoin assets.
 In December, MicroStrategy joined the Nasdaq-100 index, aligning with major companies like Apple and Microsoft. Despite these milestones, MicroStrategy’s stock (NASDAQ: MSTR) dropped 14% last week, and 4% on Monday, influenced by a broader market downturn attributed to the rise of China’s AI model, DeepSeek.