Strategy Buys Another $255M Bitcoin, MSTR Stock To Rally?

Key Insights:

• Michael Saylor’s Strategy acquired another $255 million in Bitcoin on Monday.
• However, the MSTR stock lost momentum and dropped below $170 today.
• Still, analysts remain optimistic on the MSTR Stock’s future trajectory.

The Bitcoin treasury company Strategy, led by Michael Saylor, revealed another major BTC purchase on April 27. The firm continued its BTC buying spree with a $255 million acquisition today.

Strategy Acquires Another $255 Million in Bitcoin

The firm acquired 3,273 BTC for roughly $255 million, Saylor announced in a statement posted on X. This purchase comes at an average price of $77,906 per BTC.

The recent acquisition marks the fourth consecutive week of BTC buying for Strategy. However, the amount was way less than the $2.54 billion purchase in the last week.

This acquisition brings Strategy’s Bitcoin holdings to 818,334 BTC, per recent disclosure. The company has incurred a total investment of $61.81 billion, with a cost basis of $75,537 per Bitcoin. It also disclosed a return on BTC of 9.6% year-to-date.

While the buying has not paused, the recent data points to a slowing in the pace of accumulation. This was attributed to a “quiet” issuance period for Strategy’s STRC, an instrument used to raise capital, which did not raise new funds last week.

What’s Next For MSTR Stock?

Meanwhile, Strategy stock (MSTR) was trading slightly higher in the pre-market session today. However, it lost its hold over the $170 after the market opened, mostly owing to the slower pace of BTC accumulation.

However, technical traders are paying close attention to recent developments, which suggest the stock’s trend structure is changing.

In a daily chart, trader AlgoXTrading illustrates the stock breaking out of a long-term downtrend channel and a subsequent retest of its resistance.

“$MSTR just gave a clean breakout. Resistance broke. Retest held. That’s one of the strongest signals in trading,” the analyst commented. The chart shows a consolidation period around $170-172 level.

For the MSTR stock, stability around this level is critical for continuing the upward trend. AlgoXTrading concluded, “Hold $172 and momentum stays alive.” This statement suggests potential for continued gains if the Strategy stock regains hold over the $172 level.

Bitcoin Price Analysis Amid Continued Accumulation

On Monday, Bitcoin USD price chart shows BTC continued trading below $77,800,with a slight decline in the last 24 hours.

Analyst Michaël van de Poppe noted a long-term buying opportunity on the Mayer Multiple Z-score chart.

For context, the chart measures BTC’s spread relative to its 200-day moving average. Previous green areas on this chart (where the Z-score falls below certain levels) correspond to market bottoms.

The chart reveals similar signals in previous cycles in 2018, 2020, and 2022.

Looking back, Poppe said, “in previous cycles, these levels were hit at the actual bear market bottoms.” He pointed to subsequent gains of 400% after 2018, 1300% after 2020, and another 400% surge following 2022.

Amid Strategy’s purchase, he said it is possible that Bitcoin may be in a similar accumulation phase this time around, despite low participation in the market. “At the actual moment of the opportunity, nobody seems to be interested in the asset,” he added.

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