Bitcoin News Today: MicroStrategy Pauses Bitcoin Buys as Stock Falls 9% on Strategic Shift Concerns

MicroStrategy (MSTR) has paused its Bitcoin purchases and introduced a high-yield preferred stock offering, sparking investor concern and triggering a 9% drop in its stock price. The move, described as a “prudent pause,” has raised questions about the company’s long-term strategy, particularly given its historical reliance on Bitcoin as a core reserve asset. Executives Michael Saylor and Phong Le have cited market volatility and broader uncertainty in the cryptocurrency space as key reasons for the decision [1].

The pause echoes previous strategic pauses, such as the one in Q2 2022, which also led to short-term stock declines. Historical data shows that while stock volatility tends to increase during such strategic shifts, the company has historically stabilized over longer time horizons [1]. Analysts from Kanalcoin suggest the current pause may follow a similar trajectory, with short-term instability giving way to long-term re-alignment with market expectations [1].

Despite the halt, there is no evidence of significant Bitcoin outflows from MicroStrategy’s wallets, and insiders have continued to make large Bitcoin-related purchases, signaling ongoing confidence in the company’s direction [1]. However, the stock has struggled in recent trading sessions, with a 3.44% pre-market drop on August 1, 2025, and a 5.1% intraday decline reported on July 28 [1][5]. These movements contrast with some recent analyst upgrades and strong Q2 financial results that highlighted the firm’s Bitcoin gains [2].

The broader cryptocurrency market has also seen heightened turbulence, with Bitcoin falling below $114,000 and triggering over $713 million in liquidations [3]. This broader market pressure may be amplifying concerns over MicroStrategy’s stock and its Bitcoin-focused strategy, particularly as the firm is viewed as a leader in the corporate Bitcoin treasury movement [6].

Some analysts suggest that MicroStrategy’s valuation metrics may need re-evaluation, shifting focus from Bitcoin-centric measures like BTC/share to more traditional financial indicators [7]. Additionally, the firm is being considered a potential buyer of distressed crypto assets, with some predicting industry consolidation as larger treasury companies navigate the current market conditions [4].

The upcoming earnings report on July 31, 2025, is expected to provide further clarity on the company’s financial position and future plans. In the meantime, the pause in Bitcoin purchases and the associated stock volatility have reignited debates about the sustainability of corporate Bitcoin treasury strategies [8].

Source:

[1] AInvest, [https://www.ainvest.com/news/microstrategy-mstr-drops-3-44-insider-trading-disclosures-2508/](https://www.ainvest.com/news/microstrategy-mstr-drops-3-44-insider-trading-disclosures-2508/)

[2] MarketBeat, [https://www.marketbeat.com/stocks/NASDAQ/MSTR/news/](https://www.marketbeat.com/stocks/NASDAQ/MSTR/news/)

[3] Bitcoin Magazine, [https://bitcoinmagazine.com/news/713-million-worth-of-bitcoin-and-crypto-longs-liquidated-as-bitcoin-price-dips-below-114000](https://bitcoinmagazine.com/news/713-million-worth-of-bitcoin-and-crypto-longs-liquidated-as-bitcoin-price-dips-below-114000)

[4] CoinDesk, [https://www.coindesk.com/business/2025/08/01/crypto-treasury-companies-risk-ignoring-lessons-from-history-warns-galaxy](https://www.coindesk.com/business/2025/08/01/crypto-treasury-companies-risk-ignoring-lessons-from-history-warns-galaxy)

[5] MarketBeat, [https://www.marketbeat.com/instant-alerts/microstrategy-nasdaqmstr-shares-down-51-should-you-sell-2025-08-01/](https://www.marketbeat.com/instant-alerts/microstrategy-nasdaqmstr-shares-down-51-should-you-sell-2025-08-01/)

[6] Yahoo Finance, [https://finance.yahoo.com/quote/MSTR/news/](https://finance.yahoo.com/quote/MSTR/news/)

[7] X, [https://x.com/alexjeser/status/1951277844576764236](https://x.com/alexjeser/status/1951277844576764236)

[8] TrendSpider, [https://trendspider.com/markets/symbols/MSTR/](https://trendspider.com/markets/symbols/MSTR/)