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Strategy Inc. (NASDAQ:MSTR) has bought 2,932 Bitcoin (CRYPTO: BTC) for $264.1 million, but MSTR is down to $161 on Monday morning.
Strategy paid an average of $90,061 per Bitcoin for the latest purchase, well above the company’s overall cost basis of $76,037 per Bitcoin across all 712,647 BTC holdings.
The company funded the purchase by selling 1,569,770 shares of Class A common stock for $257 million and 70,201 shares of STRC preferred stock for $7 million through at-the-market offerings.
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Strategy’s total Bitcoin holdings are now worth approximately $62.5 billion at current prices, purchased for $54.2 billion including fees—representing roughly $8.3 billion in paper gains.
The company holds about 3.4% of Bitcoin’s total 21 million supply.
Additionally, Strategy still has $8.17 billion worth of MSTR shares available for sale under its ATM program for future Bitcoin acquisitions, plus $3.62 billion worth of STRC shares remaining.
Michael Saylor, Strategy’s executive chairman, hinted at the acquisition Sunday with his usual cryptic post on the company’s Bitcoin tracker, stating “Unstoppable Orange.”
Saylor had also posted Thursday morning: “Thinking about buying more Bitcoin.”
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Weekly BTC purchases are routine for Strategy, but Saylor typically saves his posts about acquisitions for the weekend—making Thursday’s tweet unusual timing.
MSTR closed Friday at $163.11, up 1.32%, but Monday’s market open gave back Friday’s gains and is testing the critical $160 support level that’s held since December.
After collapsing 65% from July’s $473 peak to December’s $160.41 low, MSTR has spent over a month consolidating in the $160-180 range, forming what appears to be a triple-bottom pattern around the $160 support box.
The stock is barely above all EMAs in complete bearish alignment: 20-day at $166.06, 50-day at $186.80, 100-day at $228.03, and 200-day at $264.39.
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The Supertrend remains firmly bearish at $181.47.
A descending trendline from summer highs continues to pressure from above around $200-220.
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Upside: MSTR must reclaim $163.11 Friday close. Breaking $166.06 (20 EMA) then $181.47 (Supertrend) is critical. Clearing $186.80 (50 EMA) targets $200, then $228.03 (100 EMA).
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Downside: $160.60 premarket is testing $160.41 support. Breaking $160 invalidates the triple-bottom pattern and targets $150-155. Loss of $150 opens a decline to $120-130.
Image: Shutterstock
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This article Strategy Buys 2,932 Bitcoin For $264M, But MSTR Stock Tests Critical $160 Support originally appeared on Benzinga.com
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