MicroStrategy Stock Slides As Bitcoin Buying Spree Continues Amid Mounting Liquidity Fears: Retail On Edge

Shares of MicroStrategy fell over 3% in mid-day trading on Monday after disclosing that it has purchased another $2.1 billion worth of Bitcoin in its fifth-straight weekly buy.

The company’s founder and Executive Chairman, Michael Saylor, announced MicroStrategy had added another 21,550 Bitcoin to its balance sheet in a post on X (formerly known as Twitter) on Monday morning.

Michael Saylor's post on X (formerly known as Twitter) announcing MicroStrategy's latest Bitcoin buy. | Source:X/@saylor

The company now has a total of 423,650 Bitcoin in its coffers, currently valued at approximately $41.5 billion. 

The recent acquisition is part of a buying spree that began on Nov. 11. Since then, the company has added 171,430 Bitcoin to its reserves. 

These purchases have been funded by proceeds from a $2.13 billion stock sale under its October 2024 Sales Agreement, enabling MicroStrategy to issue shares for strategic investments.

MicroStrategy Sentiment and Message Volume on Dec 9 as of 12:30 p.m. ET | Source: Stocktwits

Despite these aggressive buys, retail sentiment around the stock remained ‘neutral’ (54/100) with ‘low’ message volume. Users on Stocktwits were divided on whether MicroStrategy could be overexposed to the largest cryptocurrency in the world. 

Min Jung, a research analyst at Presto Research, told Bloomberg that significant declines in Bitcoin’s value could materially impact the company’s financial condition, creating liquidity and credit risks. 

MicroStrategy also acknowledged the same risk in its Oct. 31 filing, citing that adverse Bitcoin price movements could affect its ability to secure cash outside of its enterprise analytics software business.

Meanwhile, the company also introduced an ambitious “21/21 Plan,” which aims to raise $42 billion over three years—$21 billion through equity and $21 billion through fixed-income securities—to expand its Bitcoin holdings. 

Saylor remains optimistic about Bitcoin’s future, projecting that its price could reach $13 million per coin by 2045, with a bear case of $3 million and a bull case of $49 million. 

So far this year, MicroStrategy’s stock has gained over 452%, far outpacing the broader markets and tech giants like Amazon, Microsoft, and Nvidia.

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Read also: Amazon Stock Hits Fresh Record High On Shareholders Call To Add Bitcoin To $88 Billion Treasury: Retail Onboard