Experts have hinted that MicroStrategy’s decision to sell its Bitcoin could be devastating for the already struggling market. Bitcoin is currently struggling to hold above a crucial support level as analysts predict a continuous decline to $10k.
Michael Saylor’s MicroStrategy has hinted that it could make a strategic decision to sell some of its Bitcoin holdings. While this is meant to boost its ability to meet its financial needs, experts believe that the company could be at a loss as it may sell below its cost basis.
According to MicroStrategy, it lost a whopping sum of $5.9 billion on its accumulations in the first quarter of 2025 (Q1 2025). As part of these reasons, it failed to continue its usual purchases in the week ending April 6.
As discussed earlier, the company accumulated BTC only during the week ending March 30. During that period, it purchased 22,048 Bitcoin, extending its quarterly acquisition to 80,715 Bitcoin.
Further reviewing its filing, CNF found that the company spent $7.66 billion at an average price of $94,922 to make these purchases. Currently, it owns around 528k Bitcoin at an average cost of $35 billion. This implies that the decision to sell could send the market plummeting.
How the MicroStrategy’s Bitcoin Acquisition Started
MicroStrategy’s Bitcoin accumulation goes as far back as 2020 when it announced the purchase of 21,454 Bitcoin for a cumulative amount of $250 million. At that time, its CEO, Michael Saylor, highlighted that its engagement with Bitcoin was the commencement of its latest capital allocation program. Shedding more light on this, he emphasized that the initiative underscores its interest and confidence in the asset class as a reliable store of value.
In another interview, Saylor explained that macroeconomic factors affecting its business operation influenced the decision to settle on Bitcoin as an inflationary hedge. Currently, Bitcoin has taken a hit by the recent US reciprocal tariffs as it declined by 6% in the last seven days to trade at $79k.
As noted in our previous post, Bitcoin declined from $84k to $74k on April 7 before recouping some of its losses to the current level. At press time, the asset had printed 3% gains on its 24-hour price chart. However, multiple analysts remain bearish on its future move.
According to a senior commodity strategist at Bloomberg, Mike McGlone, “excessive speculation and overvaluation” could force Bitcoin down to $10,000. Additionally, he highlighted that the current market chaos is a massive test for its “digital gold” narrative.
Regardless, popular investor Mark Cuban argues that this is the best time to buy. As outlined in our recent blog post, Cuban believes that Bitcoin currently has an edge over the US stocks and gold. Meanwhile, analysts at Standard Chartered earlier predicted that Bitcoin could stage a rebound to $100k and continue to hit $500k by 2029.
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