Bitcoin Reclaims $63K, Flushes $540M in Shorts as Strategy Buys 1,550 BTC for $101M

Bitcoin News

Strategy, the corporate Bitcoin holder formerly known as MicroStrategy, returned to the market this week with a $101 million purchase of 1,550 BTC, its first acquisition since a rare disposal earlier in the month. The buy, disclosed in an 8-K filing on Monday, lifts the firm's treasury to 845,256 BTC accumulated for just under $64 billion at an average price of $75,680 per coin. The latest tranche cost roughly $65,332 each, well below the company's blended cost basis. Executive Chairman Michael Saylor confirmed the acquisition publicly, restoring a measure of confidence that had wavered after the firm's earlier sale.

The renewed institutional buying coincided with a sharp weekend rebound that punished bearish traders. Bitcoin bounced roughly 7.5% from Saturday's $59,353 low to highs near $63,800 on Monday, a move that liquidated about $540 million in short positions on Sunday alone — the largest single-day short flush since the mid-April crash. Total liquidations across the crypto market topped $588 million over 24 hours, with shorts accounting for $444 million of that figure. Aggregated open interest fell from 285,000 BTC on Friday to around 255,000 BTC, a classic signature of a short squeeze rather than fresh leveraged longs driving the advance.

The accumulation followed a familiar playbook from Saylor, who teased the purchase over the weekend by posting the company's orange-dot acquisition chart with the caption "a good time to add more dots." Co-CEO Phong Le reinforced the message, stating that the firm's corporate strategy remains to grow net Bitcoin and Bitcoin per share over time, dismissing speculation of larger sales as "just rumors." The signaling ritual has preceded nearly every Strategy purchase for more than a year, and the fresh buy quickly cooled fears that the earlier disposal marked a shift away from the company's long-standing accumulation mandate.

Strategy financed the latest purchase primarily through at-the-market equity sales, offloading roughly 1.41 million Class A shares last week to raise approximately $181 million. A portion funded the Bitcoin buy, while the remainder lifted the company's U.S. dollar cash reserves from $900 million to $1 billion — a liquidity cushion analysts say was needed to reassure institutional holders. The firm's STRC preferred stock, a variable-rate instrument yielding 11.5% annually, had been the primary accumulation vehicle in recent weeks but has traded below its $100 par value since mid-May, effectively sidelining it as a funding tool for roughly three weeks.

The backdrop for the rebound remained fragile, with risk assets broadly under pressure from macroeconomic headlines. The S&P 500 fell 2.9% on Friday and sits well off its record high, while South Korea's KOSPI plunged more than 8% on Monday, triggering a circuit breaker. Sentiment in digital assets is deeply fearful: the Crypto Fear and Greed Index slid to 8, its lowest reading since late February. The Coinbase premium index, a gauge of U.S. exchange demand, improved only marginally to -0.035 and stayed negative, indicating that domestic spot buyers have yet to return in force.

Despite the recovery, Strategy's massive position underscores the risk embedded in leveraged corporate treasuries. With Bitcoin trading near $63,000, the firm's holdings carry an implied paper loss of around $10.5 billion against its $75,680 average entry. Analysts at JPMorgan described the earlier 32-BTC sale as "symbolic and voluntary" yet warned it "spooked" markets, noting that after retiring $1.5 billion of convertible notes, dollar reserves covered only about 6.3 months of preferred dividend obligations. The episode highlights why some institutions stay cautious on Bitcoin-heavy balance sheets even as spot ETF flows shape the narrative amid lingering bear market sentiment.

On the charts, Bitcoin trades around $63,782, up 3.25% on the day yet still locked in a broader downtrend well below its all-time high. The relative strength index sits at 27.44, deep in oversold territory and consistent with the capitulation seen near Friday's lows, while the MACD continues to flash a bearish signal. Immediate resistance stands at $64,194, followed by $66,703 and $71,032; a daily close above the first level would strengthen the case for the rebound extending. On the downside, $61,822 is the first support, with $59,136 and $52,679 below. A break beneath $59,136 would invalidate the recovery thesis and reopen the path toward deeper losses.