Strategy Buys 1,142 Bitcoin At An Average Price Of $78,815

Strategy (NASDAQ:MSTR) on Monday announced it had bought 1,142 Bitcoin (CRYPTO: BTC) at $78,815 average price for $90 million between February 2 and February 8.

The Latest Bitcoin Purchase

Strategy’s acquisition was funded by selling 616,715 shares of Class A common stock that generated $89.5 million in net proceeds. 

As of February 8, the company held 714,644 BTC with an aggregate purchase cost of $54.35 billion at a $76,056 average cost basis.

Michael Saylor hinted at the purchase in his regular Sunday X post, writing “Orange Dots Matter”.

The buying continues despite a $12.4 billion loss reported in the Q4 earnings.

CEO Phong Le told CNBC that Strategy has “been through Bitcoin downturns in the past,” citing the 2022 drawdown from $68,000 to $16,000. 

He predicted Bitcoin could hit $1 million in seven years, calling the recent quarterly loss “just a GAAP loss and not a true cash loss.”

Why The Rally Failed

MSTR closed Friday up 26% but is giving back gains in Monday pre-market trading.

The inability to hold Friday’s rally suggests it was a temporary short squeeze rather than sustainable reversal.

The stock remains trapped in a descending channel with the Supertrend at $150.09 in bearish mode. 

Pre-market weakness at $129.26 brings MSTR dangerously close to retesting the $100-$110 support zone. 

If the stock breaks below $125-$130, it will likely accelerate back toward this critical level. A breakdown below $100-$110 opens the door to $75-$85.

Additionally, resistance appears at $135-$140, followed by $150 and $155. 

MSTR needs to reclaim and hold above $155-$160 to change the downtrend narrative.

Friday’s rally failed to reach the $150-$155 hurdle, combined with Monday’s weakness, suggesting the bounce lacked conviction.

TD Cowen’s $440 Target Stands

TD Cowen maintained its $440 price target Friday, arguing there is “no reasonable scenario” forcing Strategy to sell Bitcoin. 

Analysts pointed to the company’s $2.25 billion cash reserve that could fund fixed charges for nearly 17 months while covering $1 billion of convertible notes.

The earliest trouble point appears in March 2028, when additional convertibles mature. 

CEO Le said Bitcoin would need to fall to $8,000 and remain there for five to six years before Strategy faces difficulty servicing debt.

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