Bitcoin Crashes, Yet Strategy Buys 850 BTC: Smart Move or Risky Bet?

Bitcoin Price Falls as Strategy Inc. Buys 850 BTC: A Signal of Conviction Amid Market Turbulence

Bitcoin’s price decline has once again collided with a bold corporate purchase. Strategy Inc., long recognized as one of the most aggressive institutional Bitcoin investors, has confirmed through a U.S. Securities and Exchange Commission (SEC) filing that it acquired 850 additional BTC, valued at approximately $99.7 million. The average purchase price was reported at $117,344 per coin.

The filing adds yet another chapter to the company’s long-running accumulation strategy, spearheaded by its chairman Michael Saylor. Following this purchase, Strategy Inc. now holds 639,835 Bitcoin, with a cumulative spend of $47.33 billion at an average cost of $73,971 per token.

Yet even as the company expanded its holdings, the market reacted with a price drop. Bitcoin slid below $113,000 on Monday, sparking renewed debate over whether the move represents a buying opportunity or signals deeper market weakness.

SEC Filing Confirms Acquisition

The disclosure was made official in a Form 8-K Current Report submitted to the SEC, a legal requirement for publicly traded companies to inform investors of significant events.

• Form Type: SEC Form 8-K – Current Report

• Company: Strategy Inc.

• Date Filed: September 22, 2025

• Headquarters: Tysons Corner, Virginia

• Purpose: Notification of material event within four business days

The filing provides transparency for investors, ensuring that anyone can verify the acquisition. It also underscores the company’s continued compliance with regulatory oversight, even as it pursues one of the most aggressive digital asset accumulation strategies in corporate history.

Bitcoin Slides Despite Purchase

Shortly after the news, Bitcoin’s price fell to $112,639, marking a 2.7% decline in 24 hours. This downturn followed an intraday high of $125,000, after which heavy selling pushed the price lower.

Trading volume surged by more than 128% to $53.23 billion, highlighting heightened market activity and volatility. Analysts pointed out that such trading behavior often suggests traders were “selling the news”—taking profits on the rally before the corporate disclosure became public.

Source: TradingView

The sudden sell-off raised questions: Why would Bitcoin dip even as one of its most prominent institutional supporters expanded its stake? Some market observers believe the price movement reflects the broader market’s cautious sentiment following months of rapid gains, while others argue it highlights the volatility typical of digital assets.

Why Strategy Buys Bitcoin During Crashes

For Michael Saylor and Strategy Inc., downturns are not moments of panic but opportunities for expansion. Saylor has repeatedly described Bitcoin as digital gold, the ultimate store of value, and a hedge against inflation and monetary debasement.

By continuing to purchase Bitcoin during market dips, Strategy lowers its overall cost basis, strengthening its long-term position. With an average acquisition cost of $73,971 per coin, the company still holds substantial unrealized gains despite short-term volatility.

To many, the move serves as a signal of confidence—an institutional reminder that price fluctuations do not shake long-term conviction. Each purchase reinforces Strategy’s identity as a market leader in corporate Bitcoin adoption.

Price Outlook: Can Bitcoin Rebound?

Short-Term Outlook

Bitcoin faces immediate resistance between $117,500 and $119,000, with support forming around $114,800 to $115,000. If support breaks, analysts warn the price could fall further toward $106,000.

Source: X

Crypto analyst Ted suggested that unless Bitcoin reclaims the $113,500 level soon, a deeper pullback into the $106,000 range remains likely. The market remains highly sensitive to institutional behavior, liquidity conditions, and macroeconomic data.

Medium-Term Outlook

In the coming months, analysts note that Bitcoin remains under its 20-day exponential moving average, signaling short-term weakness. However, its broader technical structure suggests the potential for recovery toward $123,000 as part of a rising channel pattern.

Long-Term Outlook

Despite short-term turbulence, many analysts continue to expect the 2025 bull cycle to remain intact. Projections for year-end range between $175,000 and $250,000, assuming institutional adoption accelerates and macroeconomic conditions stabilize.

Strategy’s decision to continue buying provides psychological support for these forecasts. For retail and institutional investors alike, it signals that one of the largest holders in the market views dips as buying opportunities, not warnings.

Broader Market Context

Bitcoin’s decline comes amid a mixed landscape for risk assets. U.S. equities have shown resilience, while interest rate discussions at the Federal Reserve continue to influence market sentiment. With the Fed hinting at possible rate cuts by year-end, some analysts expect liquidity conditions to improve, potentially supporting Bitcoin and other digital assets.

Meanwhile, institutional adoption continues to grow. Asset managers, hedge funds, and corporations are exploring Bitcoin exposure either through direct purchases or through exchange-traded products. Strategy Inc.’s purchase adds weight to this trend, reaffirming Bitcoin’s status as an institutional asset class.

Investor Psychology: Fear or Opportunity?

For many retail investors, Monday’s price action was unsettling. Bitcoin’s rapid moves often amplify fear of missing out on rallies or panic during downturns. Yet institutional actions like Strategy’s acquisition often provide a counterbalance, offering long-term conviction against short-term uncertainty.

Michael Saylor’s consistent message has been clear: volatility is the price investors pay for exposure to what he views as the most transformative asset of the century. For Strategy, every dip is not a warning—it is a discount.

Conclusion

Bitcoin’s decline below $113,000 may have rattled some investors, but Strategy Inc.’s acquisition of 850 additional BTC underscores a very different narrative. The company’s holdings now surpass 639,000 Bitcoin, making it one of the largest institutional players in the world.

While the short-term outlook points to potential volatility, the long-term story remains unchanged: institutional conviction in Bitcoin as a store of value and strategic asset is stronger than ever. For investors, the latest move highlights the difference between fear-driven trading and conviction-driven accumulation.

In the battle between volatility and vision, Strategy Inc. continues to bet heavily on the latter. Whether the market rebounds in the coming weeks or tests lower support, the company’s purchase reinforces its belief that Bitcoin’s future trajectory remains upward—corrections are temporary, conviction is permanent.

Writer @Erlin

Erlin is an experienced crypto writer who loves to explore the intersection of blockchain technology and financial markets. She regularly provides insights into the latest trends and innovations in the digital currency space.

 

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