Is MicroStrategy’s BTC Buying Spree Putting the Crypto Market at Risk?

The post Is MicroStrategy’s BTC Buying Spree Putting the Crypto Market at Risk? appeared first on Coinpedia Fintech News A viral post on X by a user named CHAIN MIND is sending shockwaves across the crypto community, comparing MicroStrategy’s Bitcoin strategy to a ticking time bomb — and warning it could collapse even harder than FTX. The post questions whether MicroStrategy’s $62 billion Bitcoin bet is an asset or a growing liability — and what could happen to the broader crypto market if the company’s high-risk strategy begins to unravel. MicroStrategy Holds 582,000 BTC Worth Over $62 Billion MicroStrategy is currently the largest public holder of Bitcoin, with over 582,000 BTC, valued at approximately $62 billion. This gives the company control of 2.77% of Bitcoin’s total supply — an unprecedented level for a single public entity. While the aggressive accumulation has made headlines, critics argue that the method behind it could be deeply flawed. Share Dilution, Debt, and a Never-Ending Bitcoin Buying Cycle According to CHAIN MIND, MicroStrategy uses a cyclical strategy: Issue new shares or debt Use the proceeds to buy BTC Announce the purchase Watch the stock price climb Repeat the process In 2025 alone, MicroStrategy has added 133,850 BTC to its balance sheet, including 26,695 BTC purchased just last month. And it’s not slowing down — a new $1 billion share sale has been announced via an ATM (At-the-Market) program, further diluting shareholder value. “They are leveraging their own equity to buy Bitcoin in a loop — and most investors have no idea how risky that is,” warns CHAIN MIND. New Accounting Rules Reveal $5.9 Billion in Unrealized Losses Adding fuel to the fire, recent accounting rule changes now force companies to disclose unrealized losses on Bitcoin holdings. For MicroStrategy, this meant reporting $5.9 billion in paper losses in Q1 2025 alone. This revelation triggered a class-action lawsuit by shareholders, who allege that the company failed to disclose the risks posed by the accounting changes. Could a Bitcoin Crash Trigger a MicroStrategy Meltdown? MicroStrategy’s average Bitcoin buy price is now $70,000. A drop below this level could severely pressure the company’s balance sheet. If Bitcoin falls 22% below this mark, analysts at Standard Chartered warn that it could force large-scale liquidations and send shockwaves through corporate Bitcoin investors. .article-inside-link { margin-left: 0 !important; border: 1px solid #0052CC4D; border-left: 0; border-right: 0; padding: 10px 0; text-align: left; } .entry ul.article-inside-link li { font-size: 14px; line-height: 21px; font-weight: 600; list-style-type: none; margin-bottom: 0; display: inline-block; } .entry ul.article-inside-link li:last-child { display: none; } Also Read : Michael Saylor Joins Pakistan’s Crypto Mission , To understand the magnitude: Public companies collectively hold about 764,070 BTC MicroStrategy alone holds 582,000 BTC (71%) The second-largest holders, Marathon Digital and Riot Platforms, trail far behind If MicroStrategy is forced to sell, it won’t just hurt shareholders — it could tank the entire crypto market. Why This Matters for Every Bitcoin Investor CHAIN MIND closes the thread with a strong warning: “If you hold Bitcoin, your fate is now partially tied to MicroStrategy’s. You better understand what that means.” The post has sparked heated debate, raising a critical question — is MicroStrategy driving the Bitcoin bull run, or dangerously overleveraged like FTX before its crash? .article_register_shortcode { padding: 18px 24px; border-radius: 8px; display: flex; align-items: center; margin: 6px 0 22px; border: 1px solid #0052CC4D; background: linear-gradient(90deg, rgba(255, 255, 255, 0.1) 0%, rgba(0, 82, 204, 0.1) 100%); } .article_register_shortcode .media-body h5 { color: #000000; font-weight: 600; font-size: 20px; line-height: 22px; text-align:left; } .article_register_shortcode .media-body h5 span { color: #0052CC; } .article_register_shortcode .media-body p { font-weight: 400; font-size: 14px; line-height: 22px; color: #171717B2; margin-top: 4px; text-align:left; } .article_register_shortcode .media-body{ padding-right: 14px; } .article_register_shortcode .media-button a { float: right; } .article_register_shortcode .primary-button img{ vertical-align: middle; width: 20px; margin: 0; display: inline-block; } @media (min-width: 581px) and (max-width: 991px) { .article_register_shortcode .media-body p { margin-bottom: 0; } } @media (max-width: 580px) { .article_register_shortcode { display: block; padding: 20px; } .article_register_shortcode img { max-width: 50px; } .article_register_shortcode .media-body h5 { font-size: 16px; } .article_register_shortcode .media-body { margin-left: 0px; } .article_register_shortcode .media-body p { font-size: 13px; line-height: 20px; margin-top: 6px; margin-bottom: 14px; } .article_register_shortcode .media-button a { float: unset; } .article_register_shortcode .secondary-button { margin-bottom: 0; } } Never Miss a Beat in the Crypto World! 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MicroStrategy issues new shares/debt to buy Bitcoin, announces purchases, and sees its stock rise, repeating the cycle. They hold over 582,000 BTC. How much Bitcoin does MicroStrategy hold? MicroStrategy holds over 582,000 BTC, valued at approximately $62 billion, representing 2.77% of Bitcoin’s total supply. How could MicroStrategy’s strategy affect the broader crypto market? If MicroStrategy is forced to sell its substantial Bitcoin holdings (71% of public company holdings), it could trigger a significant market downturn for Bitcoin and the crypto market.

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