The recent purchase by MicroStrategy of Bitcoin has sparked widespread controversy among investors, as the company announced on December 14, 2025, the acquisition of 10,645 Bitcoins for about $980.3 million, at an average price of $92,098 per coin. This announcement came at a time when Bitcoin was trading near high local levels, but the price quickly dropped sharply the next day, exceeding the range of $85,000 and reaching below $80,000 at certain moments.
This collapse is attributed to broad macroeconomic factors, such as concerns over interest rate hikes by the Bank of Japan, along with structural leverage liquidations and risk reduction by market makers. According to analyses from platforms like CryptoQuant, the decline was not due to a large-scale immediate sell-off but rather a structural leverage liquidation event, meaning it is not a collapse in fundamental demand but a market rebalancing.
With this decline, the latest batch of MicroStrategy purchases is now 'underwater' on paper in the short term, as Bitcoin now trades below the average purchase price. The company's stock (MSTR) has also been impacted more significantly, dropping by over 25% in the past five days, surpassing Bitcoin's own drop due to leverage and a net asset value (mNAV) that has fallen to around 1.11, meaning the stock is trading at only 11% above its Bitcoin holdings.
Currently, MicroStrategy holds a total of 671,268 Bitcoins, acquired for about 50.33 billion dollars, at an average price of 74,972 dollars per coin. This means the company is still achieving a positive return of 24.9% by the end of 2025 in the long term, despite short-term losses in recent purchases.
Strategically, MicroStrategy does not aim to time the bottoms precisely but follows a long-term accumulation approach, as former CEO Michael Saylor has repeatedly emphasized that owning more Bitcoin is more important than timing accuracy. However, some investors criticize risk management, especially since concerns over interest rate hikes in Japan have been known for weeks, and historically Bitcoin suffers from strong selling during Japanese monetary tightening cycles.
In conclusion, the timing may seem very bad from a short-term trading perspective, making this process look like one of the worst purchases in 2025 so far. But from a long-term strategy perspective, it aligns with the company's philosophy of holding and accumulating. If the market stabilizes and Bitcoin recovers, these temporary losses will fade, but continued pressures may increase the strain on the stock and holdings. The focus remains on macro market developments and Bitcoin's stability above key levels to assess the final impact.
