According to MicroStrategy’s latest filing with the U.S. Securities and Exchange Commission (SEC), the company spent approximately $980.3 million between December 8 and 14, 2025, to acquire an additional 10,645 Bitcoin at an average purchase price of $92,098 per coin.
Meanwhile, the cryptocurrency market is undergoing a correction. Data from Gate shows that as of December 16, the BTC price stands at $85,960, down more than 3% over the past 24 hours. This means MicroStrategy’s latest bulk purchase was made at a cost significantly above the current market price, rapidly narrowing its unrealized gains.
01 Doubling Down Against the Trend
MicroStrategy’s Bitcoin empire continues to expand as the year draws to a close. With this latest nearly $1 billion purchase, the company’s total Bitcoin holdings have reached 671,268 coins.
According to company disclosures, the total cost of its Bitcoin holdings (including fees) is approximately $5.03 billion, with an average cost of $74,972 per coin. At the current market price of $85,960, the total market value of its holdings is about $5.77 billion. Unrealized gains have dropped sharply from their peak of nearly $1 billion to around $740 million.
Michael Saylor’s "buy the dip, only buy, never sell" strategy has once again been put to the test during this market adjustment. Despite the more than 6% gap between cost and market price, MicroStrategy showed no hesitation. The company’s Bitcoin holdings now account for over 3% of the theoretical total supply of 21 million coins, firmly securing its position as the largest public company holder of Bitcoin worldwide.
02 The Financing Engine and Market Pressures
Sustaining purchases on this scale requires massive capital. MicroStrategy has developed a sophisticated "capital flywheel" to fund its ongoing acquisitions.
The latest round of Bitcoin purchases was funded through its "at-the-market" (ATM) equity offering program, which included the issuance and sale of various stocks such as Class A common shares (MSTR) and perpetual Strike preferred shares (STRK). For example, just a week before this purchase, the company sold approximately 4.789664 million MSTR shares, raising $888.2 million.
However, this aggressive buying strategy stands in stark contrast to the company’s weakening key market indicators.
Stock performance has diverged sharply from Bitcoin: So far in 2025, MSTR shares have dropped more than 40%. This underperformance is even more pronounced compared to Bitcoin’s own decline over the same period. The market is no longer simply treating MSTR as "leveraged Bitcoin," but is beginning to discount its business model itself.
mNAV ratio turns to a discount: The market commonly uses the "market capitalization to net asset value ratio" (mNAV) to assess the valuation of Bitcoin-holding companies. Currently, MicroStrategy’s mNAV has dropped to around 0.85. This means the company’s market value is now below the net asset value of its Bitcoin holdings, and its shares are trading at a discount—a rare occurrence in the past.
03 Multiple Risks Behind the Divergence
Why has the market raised red flags for this "Bitcoin whale"? The significant gap between stock price and core asset performance stems from three major concerns about the sustainability of its business model.
Cash flow and dividend pressure: MicroStrategy’s financing flywheel relies on the continuous issuance of various preferred shares, which typically come with high annual dividend commitments of 8% to 10%. Meanwhile, the company’s traditional enterprise software business continues to shrink, with 2024 software revenue hitting a multi-year low. Operating expenses and high dividend payments are heavily dependent on ongoing external financing. If capital markets tighten, this intricate "stock issuance–Bitcoin purchase" cycle could be at risk of stalling.
Index exclusion risk looms: Global index provider MSCI is considering a proposal to exclude companies whose digital asset holdings exceed 50% of total assets from its global equity benchmark indices. MicroStrategy has strongly opposed this move. However, the market is concerned that if the rule is implemented, exclusion from major indices could trigger large-scale passive selling by index-tracking funds, leading to a sharp drop in liquidity.
Increased accounting volatility: Under new FASB accounting standards, fluctuations in Bitcoin prices will be reflected directly and in real time in the company’s quarterly income statements. This means that during quarters when Bitcoin prices decline, the company may report significant paper losses. For traditional institutional investors who value stable earnings, this heightened financial volatility adds uncertainty and may prompt them to reduce or avoid exposure to such assets.
04 The Investor’s Dilemma
For investors, MicroStrategy currently presents a paradox. On one hand, it is the most convenient and largest publicly traded vehicle for direct Bitcoin exposure, and its holdings create a powerful narrative. On the other hand, it carries additional risks from its financing strategies, regulatory outlook, and financial statement volatility.
When the mNAV turns to a discount, it sends a clear signal: The market believes that the risks associated with holding MSTR stock have made it less valuable than simply holding an equivalent amount of Bitcoin directly. Investors now face a choice: Should they trust in Michael Saylor’s vision and bet that the market will eventually reprice the business model, or does the current discount reflect insurmountable fundamental flaws?
The recent drop in Bitcoin’s price from above $92,000 to the $86,000 range has amplified these concerns. The market is now questioning whether Saylor’s strategy, which thrived in bull markets, can remain effective in more volatile or even bearish conditions.
05 The Significance of a Market Barometer
Regardless of one’s view on MicroStrategy, it has become an indispensable barometer for the crypto market. It no longer merely reflects Bitcoin’s price movements; it now signals changes in traditional capital markets’ adoption, valuation logic, and risk tolerance regarding crypto assets.
MicroStrategy’s stock performance, financing activities, and market valuation (mNAV) offer an excellent window into institutional sentiment. The current divergence between its share price and Bitcoin, along with the mNAV discount, clearly shows that traditional financial investors are becoming more cautious and selective.
For regular crypto investors, this case offers a profound lesson: Even for top players, the relationship between share price and crypto asset fundamentals is not linear, and is complicated by the dynamics of traditional financial markets.
Outlook
According to Gate data, as of December 16, the BTC price stands at $85,960, down more than 3% in the past 24 hours. This correction means MicroStrategy’s latest Bitcoin purchases were made at a cost above the current market price.
The company’s stock has fallen about 42% year-to-date, and its market capitalization to net asset value ratio (mNAV) has dropped to a discounted level of around 0.85.
While Michael Saylor celebrates "more orange dots" on social media, Wall Street trading screens show MSTR’s stock chart flashing red, signaling decline and caution. The tug-of-war between conviction and reality continues.
