MicroStrategy Stock Drops After Bitcoin Purchase Pause

MicroStrategy, a prominent Bitcoin treasury firm, has experienced a shift in its stock performance following a temporary halt in its Bitcoin acquisition strategy. The company, which has been a significant player in the cryptocurrency market, saw its stock price surge towards $400 before reversing its growth trend. This reversal comes after the firm paused its Bitcoin purchases between June 30 and July 6, marking the first time it has not bought Bitcoin since the period from March 31 to April 6.

During its last purchase, MicroStrategy acquired 4,980 BTC for $531.9 million, bringing its total holdings to 597,325 BTC. This holding is currently valued at approximately $65 billion, based on the current price of Bitcoin at $109,106. The firm has spent $6.77 billion to buy 69,140 BTC between April 7 and June 29, at an average price of $97,906. At current prices, the value of those purchases has increased by over 11.42%.

Despite the pause in Bitcoin purchases, MicroStrategy has reported significant gains in its digital assets. The firm's founder and chairman, Michael Saylor, announced that digital assets recorded $14.05 billion in unrealized gains in the second quarter of 2025. This has led to an increase in the associated deferred tax expense to $4.04 billion. As of June 30, the digital asset carrying value of the firm amounted to $64.36 billion. Year-to-date, the firm’s Bitcoin gains amounted to over 88,000 BTC, valued at approximately $9.6 billion. For the full year 2024, BTC gains totaled 140,538 BTC, amounting to $13.1 billion in fiat terms.

MicroStrategy has also entered into a loan agreement during Q2, providing for aggregate borrowings of up to $31.1 million to fund a capital asset purchase. The company did not issue any common or preferred shares over the past week and has switched its focus from its common stock ATM program to its perpetual preferred stocks for funding Bitcoin acquisitions. However, the firm announced a sales agreement recently in line with its customary moves, planning to issue and sell shares worth 10% preferred stock with a total offering price of up to $4.2 billion.

The pause in Bitcoin purchases by MicroStrategy has not deterred other firms from adopting Bitcoin as a reserve asset. Bitcoin Treasuries data revealed that 135 public companies have adopted BTC as a reserve asset. Some of the recent entrants include Nakamoto Holdings, Trump Media, and American video games retailer GameStop. Additionally, Tokyo-based Metaplanet has continued with its strategy of accumulating Bitcoin, purchasing an additional 2,205 BTC for $238.7 million on July 7, bringing its total holdings to 15,555 BTC.

The momentum in the Bitcoin market has resumed, fueling bullish expectations. The leading coin surged 0.75% to $109,106 over the past day. The daily trading volume also increased moderately by 8% to $44.5 billion. Ultimately, the projections is that this accumulation trend will trigger a massive BTC price breakout soon.