Bitcoin News Today: MicroStrategy’s Bitcoin Buying Prompts Shareholder Backlash and Market Skepticism

MicroStrategy (NASDAQ:MSTR), a prominent institutional buyer of Bitcoin (BTC-USD), disclosed on Monday that it acquired 1,955 bitcoins worth $217.4 million during the week of September 2 to September 7 at an average price of $111,196 per coin [1]. This marks a significant but smaller purchase compared to the prior week, when the company acquired $449.3 million worth of Bitcoin [1]. The acquisition aligns with MicroStrategy’s long-term strategy of treating Bitcoin as a core corporate asset and a hedge against inflation. The company’s total Bitcoin holdings now exceed 636,505 coins, valued at nearly $70 billion at the current price of $109,400 [2].

The purchases were largely funded through the issuance of common stock, a move that has sparked debate among investors. Earlier, the company had committed to not issuing shares when the stock's market net asset value (mNAV) fell below 2.5x, but recent market conditions—characterized by a decline in the stock’s mNAV to 1.5x—forced the company to abandon that promise [2]. Critics argue that the issuance of shares at a modest premium to mNAV may be dilutive to existing shareholders, particularly given the high cost of capital and the significant amount of equity being sold to fund Bitcoin acquisitions [2].

Bitcoin’s price has remained relatively stable in the $110,000 range amid increased buying pressure from both MicroStrategy and institutional investors. Analysts note that while Bitcoin has absorbed the ongoing purchases without significant price surges, sudden large sell-offs—such as a $2 billion dump by large holders—can trigger sharper downward movements [3]. This is attributed to the differences in how buy and sell pressures are executed: algorithmic buying from ETFs and institutional buyers is designed to minimize price impact through fragmented and gradual transactions, whereas large sell orders tend to overwhelm liquidity, particularly in thinly traded environments [3].

The muted price response to MicroStrategy’s purchases has also been partially attributed to the potential presence of “paper” Bitcoin, or synthetic assets traded on exchanges that may not represent real coins. Such instruments could distort perceived market demand and mask actual liquidity conditions [3]. Meanwhile, broader market dynamics, including ETF inflows and regulatory developments, remain key drivers of Bitcoin’s price trajectory. Recent weeks have seen weaker ETF flows compared to the record highs seen in July and August, indicating a cooling in institutional momentum [4].

Looking ahead, the market remains focused on the Federal Reserve’s decision on September 17, with a 100% probability of a rate cut, according to the CME FedWatch tool [4]. However, analysts caution that even a rate cut may not necessarily translate into a Bitcoin price rally if inflation remains sticky and risk appetite remains constrained [4]. Additionally, a growing number of analysts, including Plan C, argue that expecting Bitcoin to reach its price peak in Q4 2025 is statistically unfounded. The traditional belief in Q4 as the best-performing quarter for Bitcoin, while historically supported, is increasingly being questioned amid structural changes in the market, including the rise of institutional treasuries and ETF-driven buying [5].

Source:

[1] Strategy acquires $217.4M worth of bitcoins in past week (https://seekingalpha.com/news/4492987-strategy-acquires-2174m-worth-of-bitcoins-in-past-week)

[2] Michael Saylor's MSTR Buys More Bitcoin (https://www.coindesk.com/markets/2025/09/02/strategy-added-another-4-408-bitcoin-for-usd450m-last-week)

[3] If selling $2 billion crashes the BTC price, why doesn’t buying $83b send it to space? (https://cryptoslate.com/if-selling-2-billion-crashes-the-btc-price-why-doesnt-buying-83b-send-it-to-space/)

[4] Bitcoin stalls around $110000; Fed rate cut may not spark rally (https://www.theblock.co/post/369743/bitcoin-rate-cut-may-not-spark-rally)

[5] Bitcoin Unlikely To Reach Price Peak In Q4 2025: Analyst (https://cointelegraph.com/news/bitcoin-price-top-2025-debate-continues-halving-cycle-analyst)