Why Strategy keeps buying Bitcoin at local peaks
Strategy, previously known as MicroStrategy, continues its practice of acquiring Bitcoin at elevated local prices due to its corporate liquidity and operational strategies rather than market timing. Despite criticisms of perceived mistimed purchases, the company prioritizes long-term exposure over precision. Since 2020, its substantial Bitcoin holdings of 641,692 BTC, valued at $68 billion, have yielded significant paper gains. However, the firm faces structural risks tied to interest-bearing obligations and reliance on capital markets. While skeptics raise concerns over financial vulnerabilities and potential downturns, Strategy’s consistent buying serves as a signal of confidence in Bitcoin's future, positioning itself as a major institutional supporter.
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Synthetic Assets
Strategy's Recent Bitcoin Acquisition
Strategy, formerly known as MicroStrategy, has faced scrutiny for its notable pattern of purchasing Bitcoin (BTC) near local price peaks in recent weeks. On November 10, CryptoQuant analyst JA Marturn highlighted a recent acquisition disclosed by Strategy’s executive chairman, Michael Saylor, which followed this pattern. According to an SEC filing, the company acquired 487 BTC between November 3 and November 9 for $49.9 million at an average price of $102,557 per coin.
Bitcoin Price Movements During Acquisition
Despite much of the week seeing Bitcoin trade sideways, BTC had peaked at $106,000 on November 3 before slipping over 9% to briefly trade below $100,000. Strategy’s purchases, however, came near one of the week’s highest prices, reinforcing its reputation for buying near market peaks. This has led to speculation on why the company appears to consistently “buy the top.”
Corporate Constraints Behind Purchase Timing
Strategy’s buying strategy is influenced more by corporate processes than by market sentiment. The company often deploys capital after specific liquidity events, such as equity sales or convertible issuances, which typically align with periods of elevated Bitcoin liquidity and stronger order books. This operational structure frequently leads to acquisitions during rallies rather than dips, creating a false impression of poor timing.
Long-Term Performance of Strategy's Bitcoin Holdings
Since initiating purchases in 2020, Strategy has become one of the most profitable corporate Bitcoin investors. The company now holds 641,692 BTC, valued at approximately $68 billion at an average price of $106,000 per coin, implying $20.5 billion in paper gains despite criticisms of its market timing. Remarkably, $12 billion of these gains were realized in just 2025, showcasing the success of its long-duration approach despite short-term volatility concerns.
Structural Risks Amidst Strong Returns
While Strategy’s Bitcoin strategy boasts exceptional returns, it does not shield the company from structural vulnerabilities. The firm now bears interest-bearing debt totaling $689 million, due by 2026. Additionally, recent fundraising efforts have seen yields rise to 10.5%, signaling tighter financing conditions. Critics argue this reliance on capital markets exposes Strategy to risks, particularly if Bitcoin prices stagnate or decline over a prolonged period.
Narrative Influence and Market Signaling
Michael Saylor’s purchases extend beyond investments; they serve as a powerful narrative tool. By maintaining a steady pace of acquisitions, even during peaks, Strategy reinforces the perception of Bitcoin as a long-term monetary asset. Frequent and transparent disclosures by the company act as market signals, stabilizing sentiment during periods of hesitation and reaffirming institutional demand for Bitcoin.
Conclusion: Strategy’s Vision
For Strategy, short-term criticisms about “buying the top” are secondary to its mission of positioning for the next decade. The firm’s identity as Bitcoin’s largest corporate holder aligns with its philosophy of steady accumulation rather than precision timing. This consistent approach cements Strategy’s role as a pivotal market participant, even as volatility and structural risks remain central considerations.