Did MicroStrategy Make Its Worst Bitcoin Purchase of 2025?

MicroStrategy’s recent acquisition of Bitcoin has sparked criticism, especially as the cryptocurrency’s value plummeted just after the announcement.

Key Takeaways

MicroStrategy purchased 10,645 BTC for around $980.3 million at an average of $92,098 per Bitcoin.
The timing was unfortunate as Bitcoin's price fell to below $80,000 shortly after the announcement.
MicroStrategy holds a total of 671,268 BTC, with a strong long-term profit position.
Investors are questioning the timing of the acquisition amid known macroeconomic risks.
Future price movements of Bitcoin will determine the success of this investment.

On December 14, MicroStrategy revealed that it purchased 10,645 BTC for approximately $980.3 million, with an average cost of $92,098 per Bitcoin. At that time, Bitcoin was trading at near local highs.

Short-Term Challenges: Timing Issues

The timing of this buy has raised eyebrows. Just a day after MicroStrategy announced its acquisition, Bitcoin's price declined towards the $85,000 level, and it briefly dipped even lower. As of now, Bitcoin is trading below $80,000. According to the announcement, MicroStrategy acquired 10,645 BTC for around $980.3 million at an average price of $92,098 per coin, marking a year-to-date BTC yield of 24.9% for 2025. This brings their total holdings to 671,268 BTC, acquired for about $50.33 billion at an average price of $74,972 per Bitcoin.

Bitcoin's recent decline has been attributed to a macroeconomic sell-off, driven by concerns over rate hikes from the Bank of Japan, liquidations from leveraged positions, and general market de-risking mechanisms. Notably, MicroStrategy’s purchase occurred right before this drop.

Understanding the Price Decline

Bitcoin's price drop has primarily been influenced by liquidations rather than fundamental selling. As reported by CryptoQuant, this market movement is better seen as a structural deleveraging event than a shift in fundamental demand.

As Bitcoin fell, MicroStrategy’s stock also took a hit, suffering more than a 25% drop over the last five trading days, significantly lagging behind Bitcoin’s performance. Although shares experienced a slight recovery, they are still well below pre-purchase announcement levels.

The Bigger Picture

Currently, MicroStrategy holds 671,268 BTC, obtained for around $50.33 billion at an average price of $74,972 per coin. Long-term, the firm remains in a strong profit position. However, with Bitcoin trading near $85,000, the latest purchase already reflects a loss on paper.

MicroStrategy’s market net asset value (mNAV) is currently approximately 1.11, indicating that its stock is trading about 11% higher than the current value of its Bitcoin holdings. This premium has quickly diminished with the decline in Bitcoin's value and a reevaluation of risk from equity investors.

Investor Reaction

Investors are not disputing MicroStrategy's overall Bitcoin strategy but are instead questioning the timing and risk management of the recent purchase. The macroeconomic factors that contributed to Bitcoin's drop were well known, as markets had been cautioning about a potential rate hike from the Bank of Japan for weeks. Historically, Bitcoin has seen aggressive sell-offs during periods of tightening from the BOJ, and this instance was no exception.

Critics argue that MicroStrategy should have waited for clearer macro signals before making such a significant investment, timing it close to market resistance while global liquidity conditions were tightening.

Evaluating the Decision

Whether this purchase was a mistake depends on the perspective taken. From a trading standpoint, it appears ill-timed, as Bitcoin fell immediately after the purchase, resulting in amplified losses for the company’s stock due to leverage and reduced NAV premiums.

From a strategic viewpoint, MicroStrategy has always emphasized long-term Bitcoin accumulation rather than short-term timing. CEO Michael Saylor has consistently argued that accumulating more Bitcoin is more important than the precise timing of purchases.

The real concern lies not in the purchase itself but rather in what happens next. If Bitcoin stabilizes and macroeconomic pressures lessen, this purchase could be integrated into MicroStrategy's long-term cost basis. Conversely, if Bitcoin continues to decline, it may remain a focal point for critics.

In conclusion, while MicroStrategy may not have made the worst Bitcoin purchase of 2025, it has certainly made the most uncomfortable one.