MicroStrategy Shares Fall 5% After $118M Bitcoin Purchase

Beincrypto reports MicroStrategy’s stock fell another 5% on Tuesday after the company purchased $118 million in Bitcoin, extending a months-long slide despite a brief early-week bounce.

On Monday the firm said it acquired 1,287 Bitcoin, increasing its reserve to 673,783. The stock peaked at $167.24, slid to a low of $155 and resettled at $157. The fresh purchase and larger reserves failed to sustain momentum, reviving doubts about investor confidence in founder Michael Saylor’s aggressive accumulation playbook. Strategy has been declining since mid-2025 and reported a $17.44 billion unrealized loss in the fourth quarter; it raised cash by selling common shares, adding $62 million to bring reserves to $2.25 billion, but investors fear it may need to sell holdings if Bitcoin falls.

As 2026 begins the outlook is uncertain: MSCI’s decision not to exclude digital-asset treasuries from its index in February offered some relief, but Bitcoin’s price remains unclear. If another sharp downturn occurs, Strategy will be affected, and continued increases in its Bitcoin exposure would likely amplify the impact and further erode investor confidence.

Key Topics

Crypto, Microstrategy, Bitcoin, Michael Saylor, Phon Le, Msci