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Bitcoin News Today: Bitcoin’s Decline Prompts MicroStrategy to Reevaluate Its Financial Approach

Bitcoin News Today: Bitcoin’s Decline Prompts MicroStrategy to Reevaluate Its Financial Approach

Bitget-RWA2025/11/03 14:50
By:Bitget-RWA

- MicroStrategy added 397 BTC ($45.6M) via stock sales, holding 641,205 BTC valued at $69B as of Nov 3, 2025. - Q3 2025 net income surged to $2.8B from $3.9B unrealized BTC gains, but Bitcoin's $108K price drop triggered mNAV 1.04x threshold. - CEO Phong Le confirmed exploring Bitcoin derivatives to maintain dividends without equity dilution as mNAV nears parity. - Company projects $34B operating income in 2025 assuming $150K BTC average price, despite analysts warning of leverage risks.

MicroStrategy (MSTR), recognized as the largest public company holding

, expanded its Bitcoin portfolio last week by purchasing $45.6 million worth of BTC, acquiring 397 at an average cost of $114,771 each. This acquisition, mainly financed through the issuance of common and preferred shares, increases the firm’s total Bitcoin stash to 641,205 coins—valued at more than $69 billion as of November 3, 2025, . This action highlights the company’s ongoing dedication to Bitcoin as a central asset in its treasury, despite the cryptocurrency’s recent price pullback.

Bitcoin News Today: Bitcoin’s Decline Prompts MicroStrategy to Reevaluate Its Financial Approach image 0

The acquisition took place amid uneven financial results. In the third quarter of 2025, MicroStrategy posted a net profit of $2.8 billion, primarily due to $3.9 billion in unrealized gains from its Bitcoin assets. Operating income soared to $3.9 billion, a sharp reversal from the $340 million net loss reported in the same quarter last year,

. However, this profitability is closely linked to Bitcoin’s market performance. So far this year, the company has realized a 26% return on its Bitcoin investments, with $12.9 billion in gains during the 2025 bull run, .

Nevertheless, Bitcoin’s value slipped below $108,000 in late October and early November 2025, marking the first negative October for the cryptocurrency since 2018,

. This downturn, linked to ongoing U.S.-China trade disputes, postponed Federal Reserve rate reductions, and wider economic uncertainty, has caused MicroStrategy’s adjusted Net Asset Value (mNAV) ratio to drop to 1.04x—a crucial level for its fundraising plans. The company had previously committed to halting common stock offerings if its mNAV fell below 2.5x, a measure designed to safeguard shareholder interests, as noted in the CoinDesk report. With the mNAV now nearly at parity, significant new Bitcoin purchases funded by equity sales are unlikely in the near term.

MicroStrategy continues to pursue a strategy that combines aggressive Bitcoin accumulation with prudent financial management. In 2025, the company raised $19.8 billion through preferred and common stock sales to support its Bitcoin acquisitions, increasing its holdings to over 3% of the total Bitcoin supply,

. Yet, the recent volatility has prompted a strategic reassessment. During the Q3 earnings call, CEO Phong Le indicated that the company may consider alternative financing options—such as Bitcoin derivatives or equity swaps—to maintain dividend distributions and its capital structure without further diluting shareholders.

Looking forward, MicroStrategy’s outlook depends on a recovery in Bitcoin’s price. The company forecasts $34 billion in operating income and $24 billion in net profit for 2025, assuming Bitcoin averages $150,000 by year-end, as reported by Coinfomania. While CEO Michael Saylor remains optimistic, market analysts warn that the company’s substantial leverage and focus on a single asset class could expose it to considerable risk if Bitcoin’s price weakens.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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