Bitcoin News Today: Bitcoin's Slide Forces MicroStrategy to Rethink Capital Strategy

MicroStrategy (MSTR), the largest corporate holder of Bitcoin, added $45.6 million in BTC to its holdings last week, acquiring 397 bitcoins at an average price of $114,771. The purchase, funded primarily through sales of common stock and preferred shares, brings the company's total Bitcoin reserves to 641,205 tokens, valued at over $69 billion as of November 3, 2025, according to a CoinDesk report. The move underscores the firm's continued commitment to Bitcoin as a core corporate treasury asset, even as the cryptocurrency faces a recent price correction.

The purchase occurred against a backdrop of mixed financial performance. For Q3 2025, MicroStrategy reported a net income of $2.8 billion, driven largely by $3.9 billion in unrealized gains from its Bitcoin portfolio. The company's operating income surged to $3.9 billion, a dramatic turnaround from a $340 million net loss in the same period last year, according to a Coinfomania article. This profitability, however, is heavily tied to Bitcoin's price trajectory. Year-to-date, the firm has achieved a 26% yield on its Bitcoin holdings, generating $12.9 billion in gains amid the 2025 bull market, according to a Yahoo Finance report.

Despite these gains, Bitcoin's price has dipped below $108,000 in late October and early November 2025, marking its first negative October since 2018, according to an Economic Times article. The decline, attributed to U.S.-China trade tensions, delayed Federal Reserve rate cuts, and broader macroeconomic uncertainty, has pushed MicroStrategy's modified Net Asset Value (mNAV) ratio to just 1.04x, a critical threshold for its capital-raising strategy. The firm had previously stated it would avoid common stock sales when its mNAV fell below 2.5x, a policy aimed at protecting shareholder value, the CoinDesk report noted. With mNAV now near parity, further large-scale Bitcoin purchases via equity issuance are likely off the table for the foreseeable future.

MicroStrategy's financial strategy remains a blend of aggressive Bitcoin accumulation and disciplined capital management. The company has raised $19.8 billion in 2025 through preferred and common stock offerings to fund its Bitcoin buys, expanding its holdings to represent over 3% of all Bitcoin in circulation, according to a GuruFocus report. However, the recent market volatility has forced a recalibration. CEO Phong Le confirmed during the Q3 earnings call that the firm may explore alternative financing tools, such as Bitcoin derivatives or equity swaps, to sustain its dividend payments and capital structure without diluting shareholders.

Looking ahead, MicroStrategy's guidance hinges on Bitcoin's ability to rebound. The company projects $34 billion in operating income and $24 billion in net income for 2025, assuming an average Bitcoin price of $150,000 by year-end, per the Coinfomania article. While CEO Michael Saylor remains bullish, analysts caution that the firm's high leverage and concentration in a single asset class expose it to significant downside risk should Bitcoin's price trajectory falter.