The latest Bitcoin purchase by MicroStrategy quickly faced more scrutiny. Just one day after the company revealed a large purchase, Bitcoin dropped sharply.
On December 14, MicroStrategy announced that it had acquired 10,645 Bitcoins for approximately $980.3 million, at an average price of $92,098 per coin. At that time, Bitcoin was trading near its local highs.
Poorly timed purchase, at least in the short term.
The timing was off. Just one day after the reported purchase from MicroStrategy, Bitcoin dropped towards the $85,000 range, briefly trading at an even larger decline. At the time of this report, the price of Bitcoin was still below $80,000.
Bitcoin's decline came amid broader selling driven by macroeconomic concerns, spurred by fears from the Bank of Japan about raising interest rates, forced liquidations, and risk reduction from market makers. MicroStrategy's purchase came just before this series.
As Bitcoin declined, MicroStrategy's shares dropped sharply. Over the past five trading days, the stock has fallen more than 25%, significantly lagging behind Bitcoin's own performance.
Despite the stock seeing a slight rebound today, it remains well below the levels it was at before the purchase announcement.
So far, MicroStrategy holds 671,268 Bitcoins purchased for about $50.33 billion at an average price of $74,972 per coin.
In the long run, the company continues to achieve deep profits.
However, short-term optics matter. As Bitcoin approaches $85,000, the recent push has already become evident on paper.
MicroStrategy's mNAV indicator is currently at 1.11, meaning the stock is trading only about 11% above its Bitcoin asset value. This premium has quickly declined as Bitcoin fell and equity investors re-evaluated risks.
Investors are not questioning MicroStrategy's thesis on Bitcoin. They are questioning the timing and risk management.
The macroeconomic risks that led to Bitcoin's decline were very clear. Markets had been warning of a potential interest rate hike from the Bank of Japan and the threat to yen trading for weeks.
Historically, Bitcoin has been heavily sold around cycles of tightening by the Bank of Japan. This time was no different.
Critics argue that MicroStrategy failed to wait for macroeconomic clarity. The company appeared to be buying aggressively near resistance when global liquidity conditions were tightening.
Was it really a mistake?
It depends on the timeframe.
From a trading perspective, it seems the purchase was poorly timed. Bitcoin dropped immediately, and the stock faced worsening losses due to leverage, sentiment, and a decline in the net asset value premium.
From a strategic perspective, MicroStrategy never aimed to time the bottom. The company continues to frame its purchases around long-term accumulation, not short-term price optimization.
CEO Michael Saylor has repeatedly argued that owning more Bitcoin is more important than precise entry timing.
The real risk is not in the purchase itself. It's what happens afterward.
If Bitcoin stabilizes and macro pressure eases, MicroStrategy's latest purchase will fade to become a long-term cost basis. However, if Bitcoin drops further, the decision will remain a focal point for critics.
MicroStrategy may not have made the worst Bitcoin purchase in 2025. But it might have been the most troubling.
