MicroStrategy’s aggressive Bitcoin acquisition strategy is facing mounting skepticism from the market, with the company’s shares tumbling to their lowest level in seven months. The software firm, which has positioned itself as a corporate Bitcoin proxy, announced a substantial new equity offering in Europe that triggered a sharp selloff among investors.
European Capital Raise Meets Investor Resistance
The immediate catalyst for the decline emerged when MicroStrategy disclosed plans to issue 7.75 million new Series A preferred shares priced at €80 each. These shares will carry an annual dividend yield of 10 percent. Through this offering, the company aims to raise approximately €620 million, equivalent to about $715 million.
Market participants responded decisively to this capital expansion plan. On Friday, MicroStrategy shares plummeted 11 percent, briefly touching the $230 threshold. Trading volume surged dramatically as sellers dominated activity, reflecting clear investor disapproval of the dilution and financing strategy.
Erosion of Bitcoin Premium Raises Concerns
A significant shift has occurred in how the market values MicroStrategy relative to its substantial Bitcoin holdings. Throughout 2025, the premium that shares previously commanded above the value of the company’s Bitcoin treasury has substantially eroded. Even during periods of Bitcoin price consolidation, MicroStrategy’s stock has continued its downward trajectory.
Should investors sell immediately? Or is it worth buying Strategy?
The decoupling from cryptocurrency performance has become increasingly evident. Over the past 30 trading sessions, the stock has declined more than 26 percent, while year-to-date losses approach 29 percent. This persistent underperformance comes despite the company continuing to expand its Bitcoin position.
On November 3, MicroStrategy added another 397 BTC to its reserves, bringing its total holdings to 641,205 coins. However, this persistent accumulation strategy is generating investor apprehension. Concerns are mounting regarding the elevated cost of financing these purchases and the company’s extreme dependence on Bitcoin’s price direction.
With shares recently testing their 52-week low near $220, CEO Michael Saylor’s corporate strategy faces its most serious market scrutiny to date. The very Bitcoin bet that transformed MicroStrategy into a cryptocurrency market darling now appears to be testing investor patience as financing costs and volatility take their toll.
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