Did MicroStrategy Make Its Worst Bitcoin Purchase of 2025?

Core Viewpoint - MicroStrategy's recent Bitcoin purchase has faced scrutiny due to the timing, as Bitcoin's value dropped significantly shortly after the acquisition, leading to a sharp decline in MicroStrategy's stock price [1][3][6]. Group 1: Purchase Details - On December 14, MicroStrategy announced the acquisition of 10,645 BTC for approximately $980.3 million, at an average price of $92,098 per coin [2]. - Currently, MicroStrategy holds a total of 671,268 BTC, acquired for about $50.33 billion at an average price of $74,972 per coin [4]. Group 2: Market Reaction - Over the past five trading days, MicroStrategy's stock fell more than 25%, underperforming Bitcoin itself, which has also seen a decline [1][3]. - The company's market NAV (mNAV) is around 1.11, indicating that the stock trades only about 11% above the value of its Bitcoin holdings, a significant compression from previous levels [5]. Group 3: Investor Sentiment - Investors are not questioning MicroStrategy's long-term Bitcoin strategy but are concerned about the timing and risk management of the recent purchase [6][9]. - Critics argue that MicroStrategy should have waited for clearer macroeconomic signals before making the purchase, as the market had been anticipating a rate hike from the Bank of Japan [7]. Group 4: Strategic Perspective - From a long-term strategy perspective, MicroStrategy does not aim to time market bottoms but focuses on accumulating Bitcoin over time [8][9]. - CEO Michael Saylor emphasizes that owning more Bitcoin is more critical than the precision of entry points, suggesting that the real risk lies in future market conditions rather than the purchase itself [9].