MicroStrategy’s Bitcoin Acquisition Under Scrutiny
MicroStrategy’s recent Bitcoin acquisition has raised eyebrows. Just a day after announcing a significant buy, Bitcoin saw a sharp decline.
On December 14th, the company revealed it had purchased 10,645 BTC for about $980.3 million, averaging out to $92,098 per coin. At that moment, Bitcoin was near its local highs.
Ill-Timed Purchase, At Least for Now
The timing was unfortunate. Just a day after MicroStrategy’s announcement, Bitcoin dropped towards the $85,000 mark and even dipped lower at times. Currently, BTC is hovering below $80,000.
This downturn coincides with wider economic worries stemming from a potential interest rate hike by the Bank of Japan, issues of leverage liquidation, and a general risk aversion among market makers. MicroStrategy’s purchase appeared to come just ahead of this trend.
As Bitcoin’s value decreased, so did the stock price of MicroStrategy. The company’s shares have plummeted over 25% in the last five trading days, lagging behind Bitcoin’s own performance.
Though there was a slight rebound in stock price today, it still remains significantly lower than before the acquisition announcement.
The Numbers Behind the Concerns
Currently, MicroStrategy holds 671,268 BTC, which were acquired at an average price of $74,972 per coin, totaling around $50.33 billion.
In the long term, the company appears to be doing well. Yet in the short term, optics matter. With Bitcoin nearing $85,000, the latest purchase already looks like a lost investment on paper.
MicroStrategy’s market NAV (mNAV) is around 1.11, implying that the stock price is merely 11% higher than its Bitcoin assets. As Bitcoin declined, this premium diminished as equity investors reassessed their positions.
Why Such a Harsh Market Reaction?
Investors don’t question MicroStrategy’s Bitcoin strategy, but rather its timing and risk management.
The macroeconomic factors contributing to Bitcoin’s drop had been clearly communicated. Markets had been alerting about a possible rate hike from the Bank of Japan and the implications for the yen carry trade for weeks.
Historically, Bitcoin has faced aggressive selling during tightening cycles from the Bank of Japan, and this incident was no exception.
Critics suggest that MicroStrategy should have waited for clearer macro signals. Amid tight global liquidity, it seems the company aggressively acquired Bitcoin near resistance levels.
Was It Truly a Mistake?
It really depends on how you look at it.
From a trading standpoint, this buy appears poorly timed. Bitcoin’s immediate drop and the compounded stock losses from leverage and sentiment have exacerbated the situation.
However, from a strategic perspective, MicroStrategy has never been about hitting the absolute bottom. The company continues to focus on long-term accumulation rather than short-term price peaks.
CEO Michael Saylor has consistently stated that the priority lies in owning more Bitcoin rather than precise entry points.
The real risk isn’t just the purchase itself, but what unfolds next.
Once Bitcoin stabilizes and the macro pressures ease, MicroStrategy’s latest buy may become less significant in terms of its long-term cost basis. Conversely, if Bitcoin continues to decline, this decision is likely to remain a point of contention among critics.
MicroStrategy might not have made the worst Bitcoin purchase of 2025. Still, it could very well be one of the most regrettable ones.
