MicroStrategy Buys More Bitcoin Despite Market Pressure
MicroStrategy has once again made headlines in the crypto world, this time by adding nearly two thousand more bitcoins to its already massive holdings. The company, led by Executive Chairman Michael Saylor, announced that it had purchased 1,955 bitcoins for a total of $217 million. These new coins were acquired at an average price of around $111,196 each, and with this move, the company’s total stash has now climbed to about 638,460 bitcoins.
Now, this news didn’t come in isolation. It followed a period of ups and downs for the company, especially after it was left out of the S&P 500 index despite meeting all the requirements for inclusion. Many had expected MicroStrategy to be added, but the slot instead went to Robinhood, which caught quite a few people off guard. That disappointment came on the back of a tough few months for MicroStrategy’s stock, which has fallen about 26% since July and is currently trading around $335.
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So, while the company keeps doubling down on its bitcoin strategy, there has been some pushback from investors. Part of the frustration is linked to the firm’s handling of its mNAV promise — basically a pledge that it would not issue new shares if the market value dropped below a certain threshold. That promise was quietly scrapped in August, raising concerns about possible dilution for existing shareholders. The metric itself, which compares the company’s stock price to the value of its bitcoin holdings, has weakened recently, sliding closer to 1.5 times instead of the more comfortable levels it used to hold.
On the market side, the timing of the purchase was interesting. Bitcoin had been trading around $110,500 before the announcement and briefly rose to $112,200 afterward, though it slipped slightly back to $111,800 once the news spread. The company’s decision was clearly seen as another strong bet on bitcoin’s long-term future, even though it came during a period when both the crypto market and MicroStrategy’s stock have faced volatility.
In the bigger picture, MicroStrategy’s aggressive accumulation of bitcoin has turned it into one of the largest corporate holders of the cryptocurrency worldwide. Critics argue that tying the company’s fate so closely to bitcoin makes it vulnerable, but supporters see it as a bold move that positions MicroStrategy ahead of traditional firms. Whether this gamble will pay off long-term remains to be seen, but one thing is certain: MicroStrategy is not backing away from its bitcoin-first strategy, even in the face of market skepticism and missed opportunities like the S&P 500.
This purchase, like many before it, reinforces the company’s message that bitcoin isn’t just a speculative asset for them — it is the cornerstone of their corporate treasury strategy.
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