Bitcoin News Today: Market Crashes, MicroStrategy's Bitcoin Strategy Stands Firm

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MicroStrategy (MSTR), the world's largest corporate holder of Bitcoin, spent $27.3 million to acquire 220 additional Bitcoin in early October 2025, according to filings and press releases. This purchase marked the company's first Bitcoin acquisition in two weeks and brought its total holdings to 640,250 BTC, valued at $47.38 billion. The funding came from the sale of preferred shares, including Series A Perpetual Strife (STRF) and Strike (STRK) preferred stocks, which have become central to the firm's capital-raising strategyFull Title of the Seventh Source Used^[7].

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The move reflects MicroStrategy's continued commitment to treating Bitcoin as a corporate treasury reserve asset. The company has raised over $46 billion through structured at-the-market (ATM) programs for preferred shares, allowing it to accumulate Bitcoin without diluting common shareholders. This approach has positioned MicroStrategy as a pioneer in institutional-grade Bitcoin adoption, with its stock price closely correlated to Bitcoin's performanceFull Title of the Fifth Source Used^[5].

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However, the market's reaction to U.S.-China trade tensions triggered a sharp sell-off in Bitcoin and other cryptocurrencies. On October 10, 2025, President Donald Trump announced a 100% tariff on Chinese goods in response to Beijing's rare earth export controls. The news sent Bitcoin plummeting below $119,000, with some altcoins dropping 20-40%. The crypto market saw over $10 billion in liquidations within 24 hours, as investors rushed to hedge against macroeconomic risksFull Title of the Ninth Source Used^[9].

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Despite the volatility, MicroStrategy's strategy remained intact. The company's preferred stock offerings, including STRK and STRF, provided a stable funding mechanism even as Bitcoin prices fluctuated. Analysts noted that the preferred shares' fixed dividend yields and conversion features made them attractive to institutional investors seeking yield amid uncertaintyFull Title of the Tenth Source Used^[10].

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Market sentiment began to stabilize by mid-October as U.S.-China trade tensions eased. Bitcoin rebounded to $115,220 by October 13, with Ethereum surging 8.9% to $4,142. Institutional buyers, including Marathon Digital Holdings, also stepped in to purchase Bitcoin at discounted prices, signaling continued long-term confidence in the assetFull Title of the Twelfth Source Used^[12].

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MicroStrategy's CEO, Michael Saylor, emphasized that the company's Bitcoin accumulation strategy is designed to withstand short-term volatility. "Bitcoin's scarcity and institutional adoption make it a superior store of value compared to fiat currencies," he stated. The company's average cost per Bitcoin remains around $74,000, providing a buffer against price declinesFull Title of the Thirteenth Source Used^[13].

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As the crypto market navigates regulatory and geopolitical uncertainties, MicroStrategy's model of using preferred shares to fund Bitcoin purchases offers a blueprint for institutional investors. With over $46 billion in remaining ATM capacity, the company is well-positioned to continue expanding its Bitcoin holdings, reinforcing its role as a leader in corporate digital asset adoptionFull Title of the Sixth Source Used^[6].