MicroStrategy's Bitcoin Buying Spree Falls Flat

MicroStrategy, a company that owns 4% of all Bitcoin in existence, has resumed buying the cryptocurrency after a summer of sales. In late August, MicroStrategy purchased 4,603 Bitcoin for $370 million, with an average price of $80,318 per coin.

This purchase was not enough to move the market significantly, as the company's large buying power is designed to avoid influencing prices. Big buyers use over-the-counter desks instead of crypto brokerages precisely to avoid moving market prices with their large orders.

In fact, MicroStrategy ran a similar experiment in January, dropping $3.4 billion on 35,932 coins at prices around $91,519 and $95,284. However, the price of Bitcoin fell off a cliff after this purchase.

MicroStrategy's influence now runs through headlines and sentiment rather than order flow. Its purchases tend to fall near local highs, and its handful of recent sales clustered near the annual low.