Down 30% in a Month, Should You Buy MicroStrategy Stock Here?

Core Viewpoint - MicroStrategy's stock has dropped 30% in one month due to Bitcoin's significant selloff, which has impacted the cryptocurrency market and erased most of the gains made in 2025 [1][4]. Company Overview - MicroStrategy, under the leadership of chairman Michael Saylor, continues to accumulate Bitcoin, adding 8,178 BTC valued at $835.6 million to its balance sheet last week, bringing its total holdings to 649,870 BTC worth $48.37 billion, with an average cost of $74,433 per Bitcoin [2][4]. - The company's stock trades at $207, significantly below its all-time high of $543, resulting in a market capitalization of $57.4 billion [4]. Market Context - The recent decline in MicroStrategy's stock reflects broader panic in the cryptocurrency markets, highlighted by an $867 million outflow from spot Bitcoin ETFs in a single day [4]. - Investors are questioning whether MicroStrategy's leveraged investment strategy will be successful amid ongoing market volatility [4]. Investment Strategy - MicroStrategy's Bitcoin treasury model is reshaping investor perceptions of cryptocurrency exposure, but the company faces challenges in balancing its ambitious year-end targets [5]. - To achieve its goal of a 30% BTC yield, MicroStrategy needs to raise approximately $2 billion in non-dilutive capital within the next two months [6]. - The company currently holds about 3% of all Bitcoin that will ever exist, built through an innovative capital markets strategy described as a "credit factory" by CEO Phong Le [6]. Funding Strategy - MicroStrategy has shifted its funding approach, raising $19.8 billion this year, with 30% derived from four newly launched preferred equity offerings totaling $6.7 billion, moving away from reliance solely on convertible debt [7].