- Institutional interest, like Rezolve AI’s $1 billion Bitcoin plan, contrasts with past downturns, supporting long-term price stability.
- Debt maturing in 2027 offers time, but falling shares limit equity-based funding for future Bitcoin purchases.
MicroStrategy now faces scrutiny as its stock declines alongside Bitcoin’s price swings. Shares have fallen over 55% since November 2025, trading near $475 earlier this year.
The company’s pivot to accumulating Bitcoin—now totaling 499,096 units worth $43.7 billion—has drawn questions as cryptocurrency markets waver. Bitcoin recently dipped to $86,000, a 9% weekly loss, testing the viability of MicroStrategy’s model.
The firm funds Bitcoin purchases through debt, including $2 billion raised this month via zero-interest convertible notes. Its average cost per Bitcoin sits at $66,350. Analysts note that if Bitcoin stays below $66,000, MicroStrategy could face pressure to sell assets.
However, immediate liquidation risks appear low. The company holds $8.2 billion in debt against $43.4 billion in Bitcoin, and most debt matures in 2027. This timeline provides breathing room, as MicroStrategy has historically held through downturns without selling since 2020.
Current market conditions differ from past slumps
Institutional adoption has grown, with firms like Rezolve AI announcing $1 billion Bitcoin allocations and governments exploring cryptocurrency reserves. Such shifts suggest broader acceptance, potentially stabilizing prices long-term. Bitcoin also retains bullish momentum, having reached record highs above $109,000 earlier this year despite recent pullbacks.
The MicroStrategy liquidation:
As MicroStrategy, $MSTR, falls over -55%, many are asking about "forced liquidation."
The company now holds $44 BILLION worth of Bitcoin, could they be forced to sell it?
Is liquidation even possible? Let us explain.
(a thread) pic.twitter.com/GcDZVu2gVa
— The Kobeissi Letter (@KobeissiLetter) February 25, 2025
Yet challenges persist. MicroStrategy’s stock slump restricts its ability to raise capital through equity sales, a key part of its acquisition cycle. While structured debt delays liquidity risks, prolonged price stagnation could strain operations.
Critics argue the model overexposes shareholders to Bitcoin’s volatility, while supporters view it as a calculated bet on cryptocurrency’s future. As markets evolve, MicroStrategy’s endurance hinges on Bitcoin’s recovery—and its capacity to outlast uncertainty.
The current price of MicroStrategy (MSTR) stock is $250.51 USD, reflecting a 11.41% decline in the past 24 hours. Over the past week, MSTR has dropped 25.73%, showing significant selling pressure. Over the past month, it has declined 33.67%, but despite this, the stock has gained 82.85% over the last six months and an impressive 264.15% over the past year, reinforcing its strong long-term performance.
MicroStrategy’s market capitalization is $64.68 billion USD, making it a key player in the market. The 24-hour pre-market trading price is $253.40 USD, showing a slight 1.15% recovery from its closing price. The company has faced recent stock declines due to Bitcoin’s price correction, as MicroStrategy holds a large amount of BTC on its balance sheet.
From a technical analysis perspective, MSTR has faced heavy volatility and is currently testing key support levels around $250 and $240 USD. If these levels hold, a potential rebound could push the stock back toward $270-$300 USD.
However, if selling pressure continues, MSTR could test lower support at $225 USD. On the upside, resistance is found at $275 and $300 USD, which could act as a breakout point for further gains.
