MicroStrategy Buys 22,305 BTC; Bitmine Adds $108.7M in ETH — XRP Monthly Chart Issues Major Warning

Published: 2026-01-21 21:37:06 |

MicroStrategy (MSTR) disclosed a major Bitcoin acquisition after filing a Form 8‑K with the SEC: the firm bought 22,305 BTC between Jan. 12 and Jan. 19, 2026, paying about $2.13 billion (average purchase price ~$95,284). That lifts MicroStrategy’s total holdings to 709,715 BTC with a cumulative cost basis near $54 billion and an average cost per coin of roughly $76,000. The purchase was funded via the company’s at‑the‑market (ATM) equity offering. Separately, Bitmine Immersion purchased 35,268 ETH (~$108.7 million) in one week, increasing its Ethereum holdings to 4,203,036 ETH. At spot prices near $3,085, Bitmine’s ETH position is valued at approximately $12.96 billion; total digital assets plus cash reserves exceed $14.5 billion (including $979 million cash and ~$22 million in high‑risk investments). Bitmine holds minimal BTC (193 BTC). Technical analysis flagged a major macro risk for XRP: the monthly Bollinger Bands midline around $1.88–$1.89 is a critical support. A sustained break below that midline could invalidate the 2024 breakout structure and, according to the chart analysis, expose XRP to a deep drawdown toward $0.20, representing an ~88% decline from current levels. The piece warns that losing the mid‑band would negate many breakout assumptions since November 2024. Key implications for traders: large institutional accumulation in BTC and ETH signals continued institutional demand and balance‑sheet allocation to crypto; XRP faces significant downside risk if monthly support fails, increasing volatility and potential market-wide sentiment shifts.

Neutral

The news contains mixed market signals. MicroStrategy’s $2.13B buy and Bitmine’s $108.7M ETH purchase are bullish for BTC and ETH because large, transparent institutional accumulations typically support higher prices, reduce available supply on exchanges, and encourage investor confidence. Both deals underline continued institutional demand and corporate treasury allocation to crypto, which is positive for medium‑to long‑term fundamentals. Conversely, the technical warning for XRP is strongly bearish for that token specifically: a monthly close below the Bollinger Bands midline would invalidate recent breakout assumptions and could trigger large deleveraging or stop losses, producing sharp downside and heightened volatility. That risk may spill into sentiment for altcoins broadly, but it does not directly negate bullish implications for BTC and ETH purchases. In short-term trading, expect increased volatility: BTC/ETH may get positive flows on institutional news, while XRP may see sharp moves and greater risk if key support breaks. In the long term, institutional accumulation supports a constructive narrative for BTC and ETH, but XRP’s outlook hinges on monthly technical confirmation. Historical parallels: past large institutional buys (e.g., MicroStrategy earlier purchases, corporate treasury buys) tended to support price discovery and investor sentiment; monthly technical breakdowns (in various tokens) have preceded extended bear phases, validating the bearish risk scenario for XRP.