MicroStrategy's Bitcoin Strategy Faces Crucial Test Amid Market Volatility

Jinse

Release Time:12/23/2025 07:45:52

BTC

$87,724.60-0.82%

MicroStrategy’s Bitcoin strategy faces a critical test with rising volatility indicators and shifting market sentiment. As of mid-December 2025, the company holds 670,000 bitcoins, or 3.2% of the total supply. It fully transitioned to a Bitcoin-focused financial entity after being the first public firm to adopt Bitcoin as a reserve asset. The business model is now at its toughest challenge since 2020 due to market swings and potential index rule changes. The firm uses ATM stock, perpetual shares, and its 42/42 plan for funding. Recent rumors of a Bitcoin sell-off were dismissed as routine transfers. While Q3 software revenue was strong, the company remains unprofitable and reliant on outside funding. Risks include MSCI index removal, NAV premium compression, and debt.

Source:Show original

Disclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of KuCoin. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. KuCoin shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information. Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. For more information, please refer to our Terms of Use and Risk Disclosure.