MicroStrategy’s $980M Bitcoin Buy Sparks Debate After Market Pullback

MicroStrategy’s latest Bitcoin acquisition has reignited debate across crypto and equity markets after a sharp short-term downturn. On December 14, the company disclosed that it had purchased 10,645 BTC for approximately $980.3 million, paying an average price of $92,098 per coin. At the time of the announcement, Bitcoin was trading near local highs, a detail that quickly became controversial as market conditions shifted.

Within a day of the purchase, Bitcoin fell sharply toward the $85,000 level and briefly dipped even lower. At the time of writing, BTC remains below $80,000, reflecting a broader risk-off move across global markets. The decline was largely driven by macroeconomic factors, including fears of a Bank of Japan rate hike, stress in the yen carry trade, forced leverage liquidations, and market-maker de-risking. Unfortunately for MicroStrategy, its latest Bitcoin buy occurred just ahead of this cascade.

The market reaction was swift. MicroStrategy stock dropped more than 25% over the past five trading days, significantly underperforming Bitcoin itself. Although shares have seen a modest rebound, they remain well below levels recorded prior to the purchase announcement, highlighting how sensitive the stock is to short-term Bitcoin price movements and investor sentiment.

In total, MicroStrategy now holds 671,268 BTC, acquired for roughly $50.33 billion at an average price of $74,972 per coin. From a long-term perspective, the company remains solidly in profit. However, short-term optics matter. With Bitcoin near $85,000 shortly after the purchase, the most recent tranche is already underwater on paper. The company’s mNAV has compressed to around 1.11, meaning the stock trades only about 11% above the value of its Bitcoin holdings.

Critics argue the issue is not MicroStrategy’s Bitcoin strategy but timing and risk management. Macro warning signs, particularly around Bank of Japan policy tightening, had been visible for weeks, and Bitcoin has historically sold off during similar periods. Supporters counter that MicroStrategy has never attempted to time the market, emphasizing long-term accumulation over short-term price optimization. Whether this purchase proves costly or inconsequential will depend on Bitcoin’s next move, making it one of the most closely watched corporate crypto bets of the year.