Microstrategy Buys 855 Bitcoin as BTC Dips Below Its Cost Basis Brief

Key Insights

• MicroStrategy bought 855 Bitcoin for about $75.3 million during a volatile trading week.
• Bitcoin briefly traded below Strategy’s average purchase price for the first time since 2023.
• Polymarket bettors still priced high odds for further Strategy Bitcoin accumulation in 2026.

Strategy disclosed a new Bitcoin purchase after sharp weekend volatility pushed prices below recent support levels. The company acquired 855 Bitcoin for about $75.3 million between Jan. 26 and Feb. 1, 2026. The purchase occurred as Bitcoin briefly fell below Strategy’s average cost basis, drawing renewed attention to its exposure.

The Strategy Bitcoin purchase mattered because it coincided with a rare pricing event. Bitcoin dipped below the firm’s $76,052 average purchase price during the sell-off. That move marked the first below-cost trade for Strategy’s holdings since late 2023.

MicroStrategy Bitcoin Purchase Funded Through Equity Sales

The filing linked the Strategy Bitcoin purchase directly to equity issuance. Strategy sold 673,527 shares of Class A common stock through its at-the-market program. The sales generated about $106.1 million in net proceeds during the same reporting period.

Those proceeds funded the Bitcoin acquisition disclosed in the filing. Strategy reported buying the 855 Bitcoin at an average price of $87,974 per coin. The filing stated that prices included fees and related expenses.

After the transaction, Strategy’s total Bitcoin holdings reached 713,502 coins. The company reported an aggregate purchase cost of about $54.26 billion. Its average cost across all holdings stood at $76,052 per Bitcoin.

Price movement during the week framed the timing. Bitcoin began the week above $87,700 and briefly traded near $90,000. Prices later slid below $75,000 on Sunday before stabilizing.

MicroStrategy Bitcoin Purchase Revived Cost Basis Scrutiny

The brief drop below cost revived comparisons with earlier cycles. Strategy adopted its Bitcoin accumulation strategy in Aug. 2020. Bitcoin first traded below the firm’s average purchase price in May 2022.

During that period, Bitcoin fell below $30,000 while Strategy’s cost averaged about $30,600. The drawdown slowed buying activity. Strategy acquired only 8,109 Bitcoin across 2022, according to the shared historical data.

Bitcoin remained below Strategy’s cost basis until late Aug. 2023. Another brief dip followed shortly after. During the extended below-cost window, Strategy completed seven purchases totaling 28,560 Bitcoin.

Those acquisitions represented roughly 22% of Strategy’s holdings at the start of that period. The history showed how prolonged price weakness influenced buying pace. It also highlighted how rare the latest below-cost trade remained by comparison.

Strategy Bitcoin Purchase Met Mixed Market Expectations

Market expectations reflected conflicting views after the sell-off. Polymarket pricing showed elevated odds for further downside. Bettors priced a 72% probability that Bitcoin would fall below $65,000 in 2026.

At the same time, Polymarket data showed optimism around Strategy’s accumulation plans. Traders assigned an 81% probability that Strategy’s Bitcoin holdings would exceed 800,000 coins. That outcome required additional purchases of at least 87,000 Bitcoin by the end of 2026.

The gap between price risk and accumulation expectations stood out. It suggested confidence in Strategy’s ability to continue funding purchases. It also implied expectations for continued volatility rather than steady appreciation.

The filing also highlighted capital structure adjustments alongside the Bitcoin update. Strategy increased the dividend rate on its Variable Rate Series A Perpetual Stretch Preferred Stock. The rate rose from 11.00% to 11.25%, effective Feb. 1, 2026.

Strategy also declared a $0.9375 cash dividend per share for February. The filing stated that the dividend was expected to be treated as a non-taxable return of capital for U.S. federal income tax purposes, subject to individual circumstances.

Strategy Bitcoin Purchase Kept Near-Term Focus on Price Levels

The immediate implication centered on price sensitivity around Strategy’s cost basis. Bitcoin’s brief move below $76,052 tested investor perception rather than balance sheet stability. The company still completed purchases well above that level during the same week.

That sequencing kept attention on timing rather than conviction. Strategy continued buying into volatility instead of waiting for deeper confirmation. The approach reinforced how closely its disclosures tracked short-term price swings.

Near term, attention remained on whether Bitcoin revisited the $75,000 area. Another sustained move below cost could renew scrutiny of purchase cadence. A rebound above recent highs would instead shift focus back to accumulation scale.

For now, the Strategy Bitcoin purchase highlighted a narrow window where price briefly undercut cost. The event passed quickly, but the signal lingered. It underscored how tightly Strategy’s public profile remained tied to Bitcoin’s short-term price behavior.

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