Summary:
Strategy Inc. (formerly MicroStrategy) revealed via social and public commentary that it averaged ~US$30,000 per BTC purchase during the 2022 crypto winter and even added more Bitcoin when prices slumped to around US$16,000. The statements suggest the company may continue accumulating during market downturns, underscoring its long-term treasury strategy.
What Strategy Claimed
- In a post on X, Strategy indicated that during the deep 2022 bear market, its average Bitcoin buy price was around US$30,000.
- Further, when BTC fell as low as ~US$16,000 (about a 50% drop from that average cost), the firm continued to add to its holdings, according to the company’s own remarks.
- The implication: Strategy views such deep corrections as buying opportunities rather than times to liquidate, suggesting a strong long-term conviction in Bitcoin’s role as a treasury asset.
Why It Matters
- Long-Term Conviction: By averaging in at ~US$30K and buying more when BTC hit ~US$16K, Strategy shows it is not merely speculating but fundamentally backing its treasury with deep conviction.
- Market Signal: Such public affirmations may boost investor confidence in Strategy’s model — especially during volatile cycles — signaling that the company believes in Bitcoin’s long-term value.
- Treasury Resilience: The comments fit with Strategy’s broader identity as a “Bitcoin treasury company,” not just a technology firm. This suggests its treasury accumulation is not opportunistic but structural to its business model.
- Potential for Future Accumulation: If the company truly remains unshaken by deep drawdowns, it could continue to build its BTC holdings in future selloffs — a factor that may influence BTC supply dynamics from corporate holders.
Current Position & Risk Profile
- Strategy continues to accumulate BTC through market cycles.
- According to recent filings, its average cost basis per BTC is significantly higher now, reflecting both older and newer purchases.
- The firm’s accumulation strategy is funded via a mix of stock issuances, preferred shares, and convertible notes, highlighting a leveraged treasury model.
- There is risk: large drawdowns below its cost basis could place pressure on its balance sheet, particularly given its use of capital markets to fund BTC purchases.
What to Watch Next
- Will Strategy repeat this behavior in the current downturn if Bitcoin corrects sharply again?
- How will its future buying be funded — through debt, equity, or a hybrid model?
- Could further public statements about deep-market buying boost confidence among retail and institutional BTC investors?
- What is the impact of Strategy’s accumulation on market supply — especially if more corporate treasury firms follow a similar playbook?
Bottom Line:
Strategy’s (formerly MicroStrategy) claims of buying BTC aggressively at ~US$30K and continuing accumulation when prices dipped to ~US$16K suggest the company is deeply committed to Bitcoin as a long-term treasury reserve. Its willingness to buy in a downturn underscores a strong conviction, potentially positioning itself to benefit from future market cycles — but not without risk, given its leveraged and public-market-funded accumulation strategy.