Bitcoin Dips to $88K as Strategy Invests Another $108M, Adding 1,229 BTC

Bitcoin experienced a decline toward the $88,000 mark on Monday, coinciding with Strategy Inc.'s announcement of a significant cryptocurrency purchase. This highlights the stark difference between short-term market fluctuations and ongoing institutional investment.

Key Takeaways

Bitcoin Price Drop: Bitcoin dipped to around $88,000 despite institutional buying.
Strategy's Major Purchase: Strategy Inc. acquired 1,229 BTC for approximately $108.8 million recently.
Bitcoin Holding Increase: The company's total bitcoin holdings have risen to 672,497 BTC.
Market Activity Surge: Trading volume has surged over 185%, indicating increased market engagement.

According to a December 29 filing with the U.S. Securities and Exchange Commission, Strategy Inc. purchased 1,229 bitcoin in the week ending December 28, investing about $108.8 million at an average cost of $88,568 per bitcoin, including fees. The acquisition was financed entirely through the proceeds from the company's continuous at-the-market offering of its Class A common stock.

Bitcoin Price Chart

During this timeframe, Strategy sold around 663,450 shares of MSTR stock, generating proceeds that matched their bitcoin expenditure. Notably, the firm did not issue any preferred shares during the week.

Strategy Expands Bitcoin Holdings Despite Market Fluctuations

Michael Saylor, executive chairman of Strategy Inc. and a long-standing advocate of bitcoin, confirmed the acquisition through a post on X. He noted that the firm has achieved a bitcoin yield of 23.2% year-to-date in 2025.

As of December 28, Strategy's holdings totaled 672,497 BTC, purchased for approximately $50.44 billion, with an average purchase price of $74,997 per bitcoin. The filing emphasized that the company adheres to Regulation FD compliance by publicly disclosing bitcoin-related metrics on its website.

Bitcoin Holdings Chart

The recent purchase took place as bitcoin’s market price softened after reaching a high of nearly $89,894 earlier in the day. It has since settled around $87,234, marking a decrease of about 0.5% in the last 24 hours and approximately 3.1% over the past week.

Since the beginning of December, Bitcoin has fluctuated significantly, peaking near $93,000 and dropping to just above $84,000.

Bitcoin December Price Movement

Trading activity has intensified, with the 24-hour volume increasing more than 185% to roughly $44.6 billion, suggesting heightened market participation during this pullback. Bitcoin remains around 30% shy of its all-time high of $126,080, recorded in October.

Strategy's Bitcoin Holdings Surge in Value

Strategy's expanding bitcoin treasury is now among the largest in the cryptocurrency market. Based on current valuations, the company's bitcoin holdings are estimated to be worth about $58.65 billion, reflecting a 16% gain in relation to the firm's average acquisition cost.

Bitcoin Value Chart

Trading on Nasdaq under the ticker MSTR, Strategy has a basic market capitalization of approximately $46 billion, with a fully diluted market cap close to $51 billion, and an estimated enterprise value of $59 billion.

The company’s net asset value metrics indicate that the stock is trading below the value of its underlying bitcoin on both a basic and diluted basis but is nearing parity on an enterprise value basis. MSTR shares were last recorded at $158.81, remaining stable throughout the day.

Market Cap Analysis

This disclosure follows several substantial purchases by Strategy earlier in the month. On December 15, the firm announced it had acquired 10,645 BTC for $980.3 million, averaging $92,098 per bitcoin, which increased its total holdings to 671,268 BTC. A week later, it was revealed that the company had raised $747.8 million through stock sales under its ATM program, elevating its U.S. dollar reserves to $2.19 billion.

Strategy’s reserves aim to support at least 12 months of dividend payments and interest expenses, with a long-term goal of sustaining 24 months or more.

Despite Strategy's continuous investment in bitcoin, the cryptocurrency is on course to end 2025 in the red, unless it rises more than 6% above its yearly open, marking a potential first for a post-halving year to conclude lower.