MicroStrategy's Bitcoin Bet: A Sudden Shift

MicroStrategy, a company renowned for its substantial Bitcoin investments, has made an unexpected move. Instead of purchasing more Bitcoin, they sold a significant portion of their own stock.

Breaking the Pattern

• Stock Sale: Sold stock worth $747.8 million
• No Bitcoin Purchase: Deviated from their usual pattern of constant Bitcoin accumulation
• Current Holdings: 671,268 BTC worth approximately $64 billion

Financial Overview

• Shares Sold: 4.54 million shares of their stock
• Available for Sale: Over $41 billion worth of stock still available
• Total Bitcoin Investment: $50.33 billion spent so far
• Average Purchase Price: $74,972 per Bitcoin
• Current Bitcoin Value: $89,000 per Bitcoin
• Profit: Approximately 19% increase in value

Cash Reserves

• Current Cash: $2.19 billion
• Previous Cash (December): $1.44 billion
• Significant Increase: Building cash reserves instead of buying more Bitcoin

Historical Context

• Bitcoin Accumulation: Began heavily buying Bitcoin in mid-2024
• Initial Holdings: Around 400,000 BTC
• Current Holdings: Over 671,000 BTC by the end of 2025

Stock Performance

• Recent Performance: Up 0.26% recently
• Overall Performance: Down 64% from its highs in July
• Selling Pressure: Strong, with frequent pushbacks

Technical Indicators

• Supertrend Indicator: $201.87 (above current price)
• SAR Dots: $191.01 (indicating a bearish trend)
• Required for Turnaround: Indicators need to flip below the current price

Support and Resistance Levels

• Support: $155-$160 (December low)
• Potential Drop: Below $155 could trigger more selling, dropping to $125 (another 24% down)
• Resistance: $175-$180 initially, with significant overhead supply at $190-$200