Strategy buys the fear: when the company bets on Bitcoin despite the market storm

*Strategy, formerly MicroStrategy, continues to extend its dominance over the Bitcoin market despite heightened volatility. At the start of November, the company announced the acquisition of a further 397 BTC, for approximately $45.6 million at an average price of $114,771 per unit, according to an 8-K filing with the SEC*.

This operation brings its total reserves to 641,205 bitcoins, or more than 3% of the maximum global supply of 21 million BTC. These assets were purchased for a total of approximately $47.5 billion, representing an average cost of $74,057 per bitcoin. Even after the recent drop in prices, the current value of this treasure trove stands at around $68 billion, generating an unrealised capital gain of roughly $20.5 billion. This deliberate HODL strategy pursued by its founder Michael Saylor shows no sign of wavering: against all odds, he reaffirms his conviction that Bitcoin will reach $150,000 by the end of 2025.

This bold gamble, supported by financing based on equity and convertible bond issuances, makes Strategy the first company in the world to have transformed its balance sheet into a true digital store of value.

While Strategy continues to accumulate, Bitcoin is undergoing a sharp correction. After briefly crossing the symbolic $100,000 mark at the end of October, the cryptocurrency fell by around 20%, hit by rising risk aversion and massive outflows from US ETFs.

Data from Farside Investors and Bitbo show several consecutive days of outflows exceeding $500 million, while CoinShares recorded $946 million in withdrawals over the first week of November.

This correction was compounded by the cautious tone of the US Federal Reserve, reigniting concerns over interest rates remaining higher for longer.

Despite this decline, Bitcoin's fundamentals remain solid. Data published by Glassnode show that the number of long-term holders (LTHs) continues to rise, while the supply available on exchanges has dropped to its lowest level in two years.

This tightening of liquid supply reflects accumulation behaviour typical of mid-cycle phases. Corrections of 15% to 30%, like the one currently observed, have historically recurred prior to every bullish resumption, reinforcing the case for a market in a healthy consolidation phase rather than a lasting reversal.

While Strategy buys the dips, retail investors are pulling back from the market. Since the start of the year, volumes on retail exchanges have fallen sharply.

The majority of retail investors now prefer gaining exposure to Bitcoin through spot ETFs, perceived as safer and easier to manage. According to several analyses, these investors predominantly bought between $70,000 and $95,000, and the decline in prices towards their average cost of around $89,600 triggered a wave of automatic sales.

This collective reaction, amplified by the passive structure of ETFs, heightened the downward pressure on prices.

Bucking the trend, Strategy is pursuing a logic of counter-cyclical accumulation. The company is not seeking to speculate on short-term fluctuations, but to optimise its average cost of acquisition over time.

Its financial reports detail a strategy funded primarily through equity issuances and convertible bonds, enabling it to continue investing even when cash flow is constrained. And every available avenue is pursued to bolster this purchasing power: on 3 November 2025, the company announced its intention to sell 3.5 million STRE Stock preferred shares to the public, under the supervision of the SEC.

The goal is clear: to raise funds to buy more Bitcoin and cover general corporate requirements. This public offering is being managed by several major financial institutions, including Barclays and Morgan Stanley, which are assisting Strategy with the fundraising. This new financing tool fits into a consistent approach: using the capital markets to convert debt and equity into Bitcoin, whilst consolidating the company's long-term position.

As long as ETF outflows persist, the market bias remains fragile, with key technical zones around $92,000 to $100,000. However, the presence of long-term investors such as Strategy continues to limit the risk of a prolonged correction.

For retail investors, the mainstream adoption of ETFs simplifies access to Bitcoin, but standardises behaviour, making the market more vulnerable to inflow and outflow cycles. Those who favour a regular buying strategy independent of these movements retain a long-term advantage.

With more than 3% of the total supply, Strategy is now a systemic player in Bitcoin. If the bullish trend resumes and institutional flows turn upwards again, the value of its portfolio could surge, boosted by its balance sheet leverage.

Conversely, a prolonged period of ETF outflows or a sustained bear market could weigh on its valuation. But for Saylor, the message remains unchanged: in a world where currencies depreciating, Bitcoin remains the only truly scarce and incorruptible asset.

Ultimately, Strategy continues to buy the fear. As retail investors pull back and institutions take their profits, the company is consolidating its position for the long term.

This contrarian bet could make Strategy the big winner of the next bull cycle, if Bitcoin regains the momentum anticipated by Michael Saylor. In a market where collective psychology often dictates movements, Strategy stands out as an example of conviction that does not waver, even in the face of the storm.