MicroStrategy, led by Michael Saylor, has long been a central player in the cryptocurrency industry, particularly in its investment strategy around Bitcoin. Recent developments, however, have caused speculation about the company’s approach to its BTC holdings, and whether adjustments are on the horizon.
What’s Happening with MicroStrategy’s Bitcoin Purchases?
For over six weeks, MicroStrategy maintained a consistent Bitcoin buying spree, adding significant amounts to its already massive holdings. However, this streak paused, sparking questions within the crypto community. As of October 6, Saylor and MicroStrategy skipped their usual public announcements of new Bitcoin acquisitions.
The company now holds approximately 649,870 BTC, worth an estimated $56 billion, acquired at an average cost of $74,433 per coin. MicroStrategy’s stock value (MSTR) remains about 70% below its peak, with its net asset value multiple reaching its cycle’s lowest point. Furthermore, regulatory concerns, like the upcoming MSCI index’s January 2026 rules, threaten companies with over 50% exposure to cryptocurrencies—MicroStrategy’s exposure is currently at 77%, making it particularly vulnerable to potential index exclusion.
Saylor’s Defense: Bitcoin-Backed Credit on the Rise
Amid criticism over the company’s financial leverage and liquidity stress, Michael Saylor responded by highlighting a different perspective. He shared a chart illustrating a sharp rise in institutional demand for Bitcoin-backed credit. Between September and late November, volumes for MicroStrategy-backed credit instruments (STRD, STRF, STRK, and STRC) surged from $3-4 million to $20 million weekly.
Saylor asserts this growth highlights growing confidence in Bitcoin as collateral, even during a period when Bitcoin dropped over 30% from its previous high of $126,198. The company, holding just 15% leverage and having raised $20 billion through its preferred-share instruments, remains positioned to sustain its strategy.
Risks and MicroStrategy’s Ongoing Commitment to Bitcoin
While the company is addressing concerns about regulatory risks and market volatility, Saylor remains steadfast in his belief in Bitcoin’s long-term potential. In a recent interview, he called volatility “Satoshi’s gift to the faithful,” underscoring his commitment to navigating Bitcoin’s fluctuations.
As Bitcoin trades around $85,757 and MSTR shares see mild improvements, the market anticipates whether MicroStrategy will continue its Bitcoin purchases in the coming weeks.
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