Bitcoin News Today: MicroStrategy's Bitcoin Bet Defies Stock's 57% Plunge

Strategy's Bitcoin-Buying Engine Remains Unshaken Amid Market Turbulence

According to analysis, MicroStrategy (MSTR) CEO Michael Saylor has reaffirmed the company's commitment to its aggressive Bitcoin accumulation strategy.

On Friday, Saylor dismissed rumors that the firm was selling its holdings, stating on CNBC, "We are buying bitcoin," and hinting at "surprising" recent activity. The company's latest purchase, disclosed in an SEC filing, added 8,178 BTC for $835.6 million, its largest acquisition since July. This brings MSTR's total holdings to 649,870 BTC, valued at roughly $61.7 billion.

The move underscores MSTR's strategy of leveraging market downturns to expand its treasury. Saylor emphasized that the firm's balance sheet remains "pretty stable" with minimal leverage and no imminent debt triggers. He also urged investors to adopt a long-term perspective, noting that BTC's current price still reflects strong returns compared to its $55,000–$65,000 range a year ago.

However, the stock has struggled. MSTR shares fell below $200 in early November, down nearly 57% from their November 2024 peak. This has pushed the company's market-to-net-asset value (mNAV) below 1, indicating that its market cap now trails the value of its Bitcoin reserves. Analysts like K33 Research's Vetle Lunde attribute this to a $5.7 billion drop in implied Bitcoin demand from MSTR's equity premium since November 2024.

Despite the discount, MSTR continues to raise capital through preferred shares. A recent €620 million euro-denominated perpetual preferred offering funded much of the latest BTC purchase. TD Cowen analysts praised the firm's ability to maintain its Bitcoin-per-share growth, even as its implied premium tightens. "Strategy remains an attractive vehicle for Bitcoin exposure," the report stated, reiterating a $535 price target for MSTR.

Saylor's bullish stance contrasts with critics like economist Peter Schiff, who has called MSTR's debt-driven model a "fraud" and challenged the CEO to a public debate. Schiff argues that the company's reliance on convertible notes and preferred stock creates insolvency risks, while analysts like Jeff Dorman counter that MSTR's debt structure lacks covenants requiring asset liquidation.

The broader market context remains challenging. Bitcoin's 30% decline from its October peak has spooked investors, with liquidity tightening and retail traders hesitant to re-enter. MSTR's stock slide mirrors this trend, though Saylor remains confident in BTC's long-term potential. "Bitcoin is always a good investment," he reiterated, citing its 50% average annual growth over five years.

Looking ahead, Saylor envisions a $1 trillion Bitcoin balance sheet, leveraging appreciation to issue over-collateralized credit products and reshape global finance. For now, MSTR's continued buying spree-financed by non-dilutive preferred shares-suggests the firm is positioning itself to capitalize on market volatility, even as critics question its sustainability.

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