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MicroStrategy continues to increase its Bitcoin holdings, transforming the company into a high-risk, crypto-linked stock.
Share dilution and price volatility are making investors nervous about long-term stability.
The company’s future value now depends more on Bitcoin than its software business.
MicroStrategy recently announced another major Bitcoin purchase between January 20 and January 25, 2026. The company bought 2,932 BTC for about $264.1 million, paying an average price of nearly $90,061 per Bitcoin. This new purchase was primarily funded through its at-the-market equity offering program, which sells new company shares to raise capital.
With this addition, MicroStrategy’s total Bitcoin holdings have now crossed 712,000 BTC. The value of these holdings runs into tens of billions of dollars, depending on market price. This makes it the largest corporate holder of Bitcoin in the world.
Thanks to this huge exposure, the company’s financial health now moves almost in the same direction as Bitcoin price, which many investors find risky.
One of the biggest worries is how MicroStrategy keeps paying for more Bitcoin. The company raises money by issuing new shares through its ATM equity program. While this brings in fresh capital, it also dilutes existing shareholders' holdings. More shares in the market mean each share represents a smaller part of the company’s value.
Recent filings showed that about $257 million in net proceeds from share sales were used directly to buy Bitcoin. Some investors feel this turns shareholders into indirect sponsors of a crypto bet rather than supporters of a software business. This creates tension between long-term investors who expected steady growth and those who now face higher risk and uncertain returns.
MicroStrategy’s stock has become extremely sensitive to Bitcoin price changes. When Bitcoin falls, the stock often drops sharply, even if the company’s core software business shows no major change. Analysts say the stock now behaves more like a leveraged Bitcoin fund than a traditional technology company.
This shift makes it harder for institutions to value the company using normal business models. Instead of focusing on revenue or profits, investors look mainly at Bitcoin charts. This makes the stock unpredictable and scary for risk-averse investors. Some funds have reduced exposure as the price can swing wildly in short time periods.
Also Read: Bitcoin & Ethereum Dip: Are Crypto Bulls Losing Control?
Another concern comes from buying Bitcoin at high price levels. Paying around $90,061 per coin increases the chance of large unrealized losses if the market corrects. In earlier periods of decline,
MicroStrategy reported billions of dollars in paper losses on its digital assets. Even though these losses are not realized unless sold, they still affect investor confidence and headlines.
Aggressive buying can be seen as a strong belief in Bitcoin’s future, but also as pressure to buy before prices go higher. Critics say this strategy leaves little room for error if BTC enters a long downturn cycle. The company’s balance sheet is now tied to a single highly volatile asset, which violates traditional rules of corporate diversification.
MicroStrategy’s buying plans also raise governance issues. The company started as an enterprise software firm, but now most attention is on its Bitcoin treasury. Shareholders question whether the board is managing risk properly or simply following a single vision too strongly.
There are also concerns about lenders and partners. If Bitcoin becomes more unstable, credit terms could become stricter, and funding costs may rise. This would add pressure on future financing plans and limit flexibility.
Also Read: Bitcoin Faces Rising Downside Risks as Liquidity Drains and Selling Pressure Build in Late January
Supporters argue that Bitcoin price prediction displays a long-term upside far greater than cash or bonds. They say using equity sales instead of debt is safer and shows discipline. Still, many investors feel uncomfortable with such heavy concentration in one asset class.
As long as MicroStrategy keeps buying Bitcoin, the company will remain a symbol of corporate crypto risk. Each new purchase brings excitement for some and fear for others.
The future depends largely on Bitcoin’s price direction, making MicroStrategy a company watched closely by both tech and crypto markets, even when the results of its software business stay quiet.
Why is MicroStrategy buying more Bitcoin?
MicroStrategy believes Bitcoin is a long-term store of value and expects its price to rise over time.
How much Bitcoin does MicroStrategy hold now?
The company holds over 712,000 BTC, making it the largest corporate holder of Bitcoin.
Why are investors worried about this strategy?
Investors fear heavy reliance on a single volatile asset, share dilution, and sudden stock price swings.
How does Bitcoin affect MicroStrategy’s stock price?
When Bitcoin rises, the stock usually rises, and when Bitcoin falls, the stock often drops sharply too.
Is MicroStrategy still a software company?
Yes, but its identity is now closely linked to Bitcoin, with the software business receiving less market attention.
