MicroStrategy Stock Declines Despite Bitcoin Purchase As DeepSeek Fears, Dimming Hopes Of Rate Cut Spooks Crypto Investors, But Retail Is Optimistic

MicroStrategy’s total Bitcoin holdings now stand at 471,107, worth $47 billion, based on the current BTC price of $99,610. It has paid $30.1 billion in aggregate for its BTC purchases.

Shares of MicroStrategy Inc. (MSTR) tumbled nearly 5% in mid-day trade on Monday after DeepSeek-R1’s launch and declining probability of a rate cut by the Federal Open Market Committee (FOMC) spooked cryptocurrency investors, despite the Michael Saylor-led company purchasing another tranche of Bitcoin (BTC) on Monday morning.

MicroStrategy announced the purchase of 10,107 BTC for $1.1 billion at an average price of $105,596 per BTC. Its total Bitcoin holdings now stand at 471,107, and based on the current BTC price of $99,610, it is worth $47 billion.

In a filing with the U.S. Securities and Exchange Commission (SEC), MicroStrategy disclosed that its average BTC purchase price is $64,511 per Bitcoin, or about $30.4 billion in aggregate.

MicroStrategy’s current unrealized gains from its Bitcoin holdings stand at approximately 54.4%.

This comes amid a broader sell-off across the cryptocurrency sector, both coins and crypto-linked stocks. Many of the top cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), XRP (XRP), Dogecoin (DOGE), and others.

Bitcoin also fell below the $100,000 mark amid DeepSeek-fueled panic in U.S. equities, especially in the technology sector.

Meanwhile, according to CME Group’s FedWatch tool, the probability of the FOMC maintaining the existing interest rates in its Jan. 28-29 meeting stood at 97%.

While MicroStrategy’s market capitalization is currently down by $4.7 billion, BTC’s market capitalization has fallen by nearly $91 billion over the past 24 hours.

Despite the pullback, retail sentiment regarding the MicroStrategy stock entered the ‘bullish’ (58/100) territory after being ‘bearish’ a day ago. Message volume also surged to hover in the ‘normal’ zone.

Meanwhile, one user thinks the MicroStrategy stock price will close above the $360 level during today’s session.

One user recommends the “buy the fear” strategy.

The MicroStrategy stock has nearly doubled over the past six months, gaining almost 97%. Its one-year returns stand at a whopping 546%.

Bitcoin, on the other hand, has registered gains of nearly 47% over the past six months and 136% over the past year.

For updates and corrections, email newsroom[at]stocktwits[dot]com.<