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.
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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?
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FAQs
MicroStrategy issues new shares/debt to buy Bitcoin, announces purchases, and sees its stock rise, repeating the cycle. They hold over 582,000 BTC.
MicroStrategy holds over 582,000 BTC, valued at approximately $62 billion, representing 2.77% of Bitcoin’s total supply.
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.
