MicroStrategy returns to the market by investing over $200 Million to increase its Bitcoin Holdings

TradingKey - MicroStrategy continues its aggressive strategy, investing over $200 million to increase its Bitcoin holdings. Will this move lead to a rebound in its stock price?

After a brief pause, MicroStrategy has restarted its Bitcoin purchase plan. According to the company's SEC Form 8-K filing, the company suspended Bitcoin purchases from January 1 to January 5, 2025, but then spent $240 million to acquire 2,500 Bitcoins from January 6 to January 12, at an average price of $96,000 each.

MicroStrategy stock price trend chart, source: TradingView.

On Monday, MicroStrategy's stock ended a streak of declines, inching up to $328. From a technical analysis standpoint, the short-term support level for the stock is around $300. Will a rebound occur at this level?

At the time of writing, MicroStrategy's total market capitalization stands at $80.7 billion, with the value of its 450,000 Bitcoins estimated at around $42 billion, representing 53% of its total value. This indicates that the company's stock price movements are closely tied to Bitcoin's performance.

Currently, MicroStrategy's influence on Bitcoin prices appears limited to its own purchases funded by issuing common stock. Market analysts suggest that external factors, potentially including government strategic reserve plans, could play a significant role in price movement throughout 2025. Without such catalysts, both Bitcoin and MicroStrategy's stock price may continue to face market pressures.