MicroStrategy Doubles Down on Bitcoin with Massive $835 Million Purchase

As its stock faces significant headwinds, the publicly-traded company most synonymous with Bitcoin is accelerating its cryptocurrency acquisition strategy. MicroStrategy has executed its largest single Bitcoin purchase in months, deploying $835.6 million to expand its substantial holdings. This aggressive move comes while the company's shares have lost more than half their value, prompting questions about whether CEO Michael Saylor's strategy represents visionary thinking or excessive risk-taking.

Despite this substantial Bitcoin investment, market reaction to MicroStrategy's announcement was muted. In pre-market trading following the news, the company's stock declined 2% to $195.86. Bitcoin itself was trading around $94,000 at the time of the purchase announcement—approximately 30% below early October's peak levels.

The central question facing investors is whether MicroStrategy can sustain this aggressive acquisition approach if Bitcoin faces prolonged pressure. Financial experts remain divided. Supporters highlight the company's debt structure, which eliminates margin call risks. Critics question how long the organization can service its debt obligations should Bitcoin enter an extended downturn. The upcoming quarterly financial report may provide clarity—or raise additional concerns.

Record Purchase Expands Dominant Position

On November 17, 2025, MicroStrategy confirmed acquiring 8,178 Bitcoin at an average price of $102,171 per coin. This transaction brings the company's total Bitcoin treasury to 649,870 BTC, representing approximately 3.1% of the entire Bitcoin network. The total value of these holdings stands at $48.37 billion, acquired at an average cost of $74,433 per Bitcoin. Despite recent price declines, the company maintains approximately $12.88 billion in unrealized gains on its cryptocurrency investments.

The firm's Bitcoin portfolio has generated an impressive 27.8% return in 2025. However, this cryptocurrency success contrasts sharply with its equity performance, with shares shedding over half their value during the past four months. The company's market valuation now barely exceeds the value of its Bitcoin reserves—a clear indicator of growing investor apprehension.

Should investors sell immediately? Or is it worth buying Strategy?

Innovative Financing Preserves Shareholder Value

To fund this substantial Bitcoin acquisition without diluting existing shareholders, MicroStrategy employed a sophisticated financing approach. Rather than issuing common stock at depressed prices, the company tapped the market for preferred shares. Approximately $715 million was raised through Euro-denominated preferred stock series STRE ("Steam"), with an additional $131.4 million coming from STRC ("Stretch") instruments.

This funding mechanism represents both necessity and strategic planning. With common stock trading below $200 per share, a traditional equity offering would have been prohibitively expensive for current investors. The approach demonstrates MicroStrategy's unwavering commitment to its Bitcoin-first strategy, regardless of market conditions.

Leadership Reaffirms Commitment Amid Speculation

Responding to mounting market speculation about potential Bitcoin sales under pressure, CEO Michael Saylor delivered a definitive rebuttal during a November 15 CNBC interview. "False," he stated categorically when questioned about possible divestment. He further revealed the company was actually accelerating its purchase tempo, promising investors would be "pleasantly surprised"—a prediction that materialized just three days later with the major acquisition announcement.

Saylor emphasized the company's "stable" balance sheet with minimal leverage, noting no immediate debt repayment pressures. His counsel to concerned investors was to "zoom out" and focus on the long-term vision rather than short-term volatility. The executive's objective remains unchanged: building a Bitcoin-dominated balance sheet valued at one trillion dollars.