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MicroStrategy’s $10B debt: Will MSTR be forced to sell Bitcoin?

MicroStrategy’s stock is feeling the heat as it battles a broader stock market downturn.

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  • MSTR is known for its Bitcoin purchases, but now, its stock valuation is under the microscope.
  • Would a stronger-than-expected U.S. economy be its worst nightmare?

The crypto market wasn’t the only one reeling from the recent Fed news; the stock market also suffered significant losses. The S&P 500 alone erased a staggering $2.5 trillion in market cap in just four weeks.

You might be wondering – what’s the connection between the two? The answer lies in one powerful force.

MSTR : On the brink of a massive fallout?

Undoubtedly, MicroStrategy [MSTR] and Bitcoin [BTC] have become a powerful duo. Since Bitcoin broke into the mainstream in 2020, MSTR has strategically scooped up BTC during market dips.

No wonder, with every downturn, all eyes are on MSTR – and it consistently delivers. Just recently, MSTR made its 52nd Bitcoin purchase, adding 2,530 BTC to its portfolio.

However, MSTR isn’t immune to Bitcoin’s downturns. Its stock valuation is closely tied to Bitcoin’s performance, making it sensitive to market shifts.

But an interesting anomaly has caught AMBCrypto’s attention: While Bitcoin surged past $100K, MSTR’s stock, which once peaked at $504, is now down 34%.

Source: TradingView

So, the disconnect seems clear: broader stock market volatility is catching up. Just days ago, the S&P 500 wiped out $800 billion in a single session and is now 4.5% below its all-time high from December.

The Federal Reserve’s decision to cut only one rate in 2025 (instead of two) has pushed the U.S. dollar and Treasury yields back up. Both the stock and crypto markets have been on the decline, with inflation still high and chances of rate cuts looking slim.

For MicroStrategy, 2025 is shaping up to be a tougher year. But with Bitcoin still at the heart of its strategy, will MSTR be forced to trim its BTC holdings?

Does it have financial credibility?

MicroStrategy is in the spotlight for two reasons. First, their continuous Bitcoin buys are hard to ignore. But just as important are their plans.

How do they intend to finance these purchases? In mid-November, MicroStrategy acquired 55,000 BTC in a single transaction, costing them a staggering $5.4 billion. 

But this is just the start. The real shocker is MicroStrategy’s plan to invest $42 billion in Bitcoin over the next three years. But how will they fund this? Their strategy is debt financing.


Read Bitcoin’s [BTC] Price Prediction 2025-26


At first glance, this might seem logical, especially as MSTR’s market cap shrinks. However, with rising interest rates, borrowing costs are likely to increase, making this strategy more expensive over time.

The company has already raised $10 billion in debt and is sinking deeper into liabilities. With the stock market shaky, interest rates climbing, inflation rising, and Bitcoin’s volatility still a factor, MicroStrategy is caught in a web of risks.

The pressure is mounting, and many are beginning to wonder: Is it time for MSTR to cash out before the situation gets worse? The clock is ticking.