Bitcoin Updates: MicroStrategy's Bold Bitcoin Investment Stands Strong Despite 57% Drop in Stock Value

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Bitcoin Updates: MicroStrategy's Bold Bitcoin Investment Stands Strong Despite 57% Drop in Stock Value

Bitget-RWA2025/11/18 04:24

By:Bitget-RWA

- MicroStrategy's CEO reaffirms Bitcoin buying strategy amid market volatility, adding 8,178 BTC for $835.6M. - Despite 57% stock decline, MSTR's Bitcoin holdings reach $61.7B, funded by preferred shares and convertible notes. - Critics question debt-driven model's sustainability, but analysts praise its Bitcoin-per-share growth and $535 price target. - Saylor envisions $1T Bitcoin balance sheet, leveraging appreciation for credit products and reshaping global finance.

Strategy’s Bitcoin Acquisition Approach Stays Firm Despite Market Volatility

As per recent analysis

, MicroStrategy (MSTR) CEO Michael Saylor has reiterated the company’s unwavering dedication to its robust

Bitcoin

accumulation

approach

On Friday, Saylor dismissed speculation about the company offloading its assets, telling CNBC, “We are buying bitcoin,” and alluding to “unexpected” recent transactions. The company’s most recent acquisition, revealed in an SEC document,

involved purchasing 8,178 BTC for $835.6 million

, marking its largest buy since July. This increases MSTR’s total Bitcoin holdings to 649,870 BTC,

now worth approximately $61.7 billion

This action highlights MSTR’s tactic of using market dips to grow its reserves. Saylor pointed out that the company’s financial position remains “quite stable” with low leverage and

no immediate risk of debt calls

. He also encouraged investors to focus on the long term, noting that BTC’s present value still offers significant gains compared to its $55,000–$65,000 range from a year prior.

Nevertheless, the company’s stock has faced difficulties.

MSTR shares dropped below $200

in early November, representing a decline of nearly 57% from their November 2024 high.

This has caused the company’s market-to-net-asset value (mNAV)

to fall below 1, meaning its market value is now less than its Bitcoin assets.

Analysts such as K33 Research’s Vetle Lunde

attribute this to a $5.7 billion reduction in implied Bitcoin demand from MSTR’s equity premium since November 2024.

Despite trading at a discount,

MSTR

continues to secure funding through preferred stock offerings.

A recent perpetual preferred share issuance denominated in euros, totaling €620 million

provided much of the capital for the latest Bitcoin purchase. TD Cowen analysts commended the company’s ability to keep increasing its Bitcoin per share, even as the implied premium narrows. “

Strategy remains a compelling option for Bitcoin exposure

,” the report noted, maintaining a $535 price target for MSTR.

Saylor’s optimistic outlook stands in contrast to critics like economist Peter Schiff, who has labeled MSTR’s debt-based approach a “fraud” and challenged Saylor to a public debate.

Schiff claims that the company’s dependence

on convertible bonds and preferred shares introduces insolvency risks, while analysts such as Jeff Dorman argue that MSTR’s debt lacks covenants that would force asset sales.

The overall market environment remains tough. Bitcoin’s 30% drop from its October high has unsettled investors, with liquidity tightening and retail participants reluctant to return. MSTR’s share price decline reflects this broader trend, though Saylor remains optimistic about Bitcoin’s future. “Bitcoin is always a good investment,” he reiterated,

referencing its 50% average annual return

over the past five years.

Looking forward,

Saylor foresees a $1 trillion Bitcoin balance sheet

, using asset appreciation to issue over-collateralized credit products and transform the global financial landscape. For now, MSTR’s ongoing buying—financed by non-dilutive preferred shares—indicates the company is positioning itself to benefit from market swings, even as skeptics question its long-term viability.

---

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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