MicroStrategy Incorporated (NASDAQ:MSTR) shares were down 9% on Tuesday afternoon after the software firm, now rebranded as Strategy, announced a $2 billion Bitcoin purchase even as the cryptocurrency’s price has declined.
The company, a major corporate holder of Bitcoin, acquired 20,000 BTC, bringing its total holdings to approximately 499,096 BTC, valued at $43.7 billion.
The latest purchase was funded by a $2 billion convertible note offering, part of its ambitious plan to raise $42 billion over three years for further Bitcoin acquisitions.
Despite reporting a $670 million net loss in Q4 2024, Strategy holds an unrealized $14.8 billion gain on its Bitcoin reserves. BlackRock recently increased its stake in the company to 5%, signaling institutional interest in its Bitcoin-focused strategy.
Critics, including economist Peter Schiff, questioned the sustainability of the firm’s aggressive buying, warning that Bitcoin could fall further without continued large-scale purchases.