MicroStrategy Doubles Down on Bitcoin Bet Amid Stock Plunge

As cryptocurrency markets experience significant turbulence, MicroStrategy has executed another bold move in its ongoing digital asset strategy. The business intelligence firm has substantially increased its Bitcoin holdings through a major purchase, even as its own stock price faces severe downward pressure.

Between November 10 and 16, MicroStrategy purchased an additional 8,178 Bitcoin at a cost of approximately $836 million. This transaction represents the company's largest single acquisition since July 2025, bringing its total holdings to a massive 649,870 BTC—accounting for more than 3% of the entire global Bitcoin supply.

The company paid an average price of $102,171 per Bitcoin, significantly above current market levels. MicroStrategy's total Bitcoin investment now stands at approximately $48.37 billion, acquired at an average cost of $74,433 per coin.

Innovative Financing Approach

The method MicroStrategy used to finance this purchase demonstrates financial ingenuity. Rather than issuing common stock, the company utilized preferred share instruments, including $131.4 million in STRC series shares and approximately $715 million in euro-denominated STRE series shares.

This financing strategy reflects the stock's current sensitivity. With shares trading near net asset value, issuing additional common stock would have been dilutive to existing shareholders. The current market valuation sits at just 0.93 times net asset value—a substantial discount compared to historical premiums.

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Share Price Under Pressure

While the company continues accumulating Bitcoin, MicroStrategy shares have experienced a dramatic decline. The stock has lost over 56% of its value within four months, trading at its lowest level since October 2024. Market volatility remains elevated at 52.76%, while an RSI reading of 84.2 indicates severely oversold conditions.

Despite these challenges, Chairman Michael Saylor maintains an optimistic outlook. "We're buying quite a bit," he recently emphasized, pointing to the company's resilience even during unfavorable Bitcoin price environments. His confidence stems from MicroStrategy's diversified capital structure utilizing various preferred share instruments.

Corporate Bitcoin Strategy Intensifies

MicroStrategy continues to position itself as the world's largest corporate Bitcoin holder. The company's "42/42" capital plan aims to raise $84 billion by 2027, with all proceeds dedicated to additional Bitcoin acquisitions. This aggressive accumulation strategy persists despite recent market volatility, with Bitcoin currently trading around $90,000.

The stock remains the most direct equity play on Bitcoin price movements, exhibiting a beta of 3.37—making it three times more volatile than the broader market. The central question facing investors is whether MicroStrategy's strategy represents visionary foresight or an increasingly risky dependency on cryptocurrency performance.