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Bitcoin News Update: MicroStrategy's Optimism on Bitcoin Faces Skepticism as Shares Fall by 35%

Bitcoin News Update: MicroStrategy's Optimism on Bitcoin Faces Skepticism as Shares Fall by 35%

Bitget-RWA2025/11/17 23:36
By:Bitget-RWA

- MicroStrategy's Saylor dismissed Bitcoin sell rumors, reaffirming aggressive accumulation amid crypto volatility. - Company's latest $835M purchase added 8,178 BTC, boosting total holdings to 649,870 coins valued at $61.3B. - Saylor defended financial strategy, claiming 80% BTC price drop would still leave balance sheet "overcollateralized." - Stock fell 35% YTD despite bullish stance, as critics question equity dilution and dividend sustainability. - Long-term vision includes $1T Bitcoin balance sheet f

Michael Saylor, who serves as executive chairman at MicroStrategy (MSTR), has refuted speculation that the company is offloading its

assets, reiterating the firm’s commitment to aggressively acquiring more as the cryptocurrency market experiences fresh turbulence. Speaking with CNBC, Saylor confirmed, "We are buying Bitcoin," and suggested that more purchases would be revealed on Monday, with investors expected to be "pleasantly surprised" by the scale of recent transactions . His remarks follow blockchain data indicating BTC was moving out of company wallets, sparking rumors that MicroStrategy could be selling to shore up its finances. Saylor, however, stressed his confidence in the company’s financial health, pointing out that even after a recent drop below $95,000, Bitcoin’s value still represents "a pretty great return" compared to the previous year .

MicroStrategy’s most recent acquisition—8,178 BTC for $835.6 million—stands as its largest since July, according to a filing dated Nov. 17. This purchase increases the company’s total Bitcoin holdings to 649,870 BTC, now worth about $61.3 billion at present market rates

. The average cost per Bitcoin for these holdings is approximately $74,079, which is well below the current market price of nearly $96,800. Saylor has consistently highlighted the company’s long-term approach, noting that Bitcoin’s five-year annualized returns of 50% have outperformed traditional assets such as gold and the S&P 500 .

The company’s market value has now dipped below the worth of its Bitcoin reserves, causing its market-to-net-asset value (mNAV) to fall under 1—a figure often cited as a sign of undervaluation. As of Nov. 14, MicroStrategy’s market capitalization was $59.92 billion, compared to the $61.3 billion value of its BTC holdings

. Short sellers such as Jim Chanos from Kynikos Associates have pointed to the shrinking difference, predicting that mNAV will eventually reach 1.0 as investor enthusiasm fades. Chanos recently exited his hedged position in , commenting, "The thesis has largely played out," though he anticipates further narrowing .

MicroStrategy funds its strategy through convertible bonds and preferred shares, with recent Euro-denominated preferred stock sales bringing in $715 million. Since 2020, the company has raised $8.2 billion via convertible debt, using the capital to grow its Bitcoin reserves. Saylor contended that even if Bitcoin’s price were to drop by 80%, the company’s assets would still be "overcollateralized" compared to its debt

. This position contrasts with rising investor worries about the sustainability of preferred dividend payments, which total around $735 million each year .

Saylor’s ambitions go beyond treasury management. In a wider discussion with Bitcoin Magazine, he described plans to build a $1 trillion Bitcoin balance sheet, aiming to use long-term appreciation to launch Bitcoin-backed lending products with yields higher than those in traditional finance. This would involve developing over-collateralized offerings, such as savings and insurance products, all denominated in Bitcoin

. This approach matches the increasing institutional embrace of digital assets, which Saylor noted has grown from just a few companies in 2020 to more than 250 by the end of 2025 .

Despite Saylor’s optimistic outlook, MicroStrategy’s shares have dropped nearly 35% since the start of the year, trading at about $195 as of Nov. 17. Critics claim that the company’s dependence on issuing new shares to finance purchases has eroded shareholder value, while regulatory uncertainty and market downturns have dampened investor sentiment

. Nonetheless, Saylor remains undeterred, asserting, "We're always buying," and indicating plans to take advantage of price declines to further increase the company’s holdings .

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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