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.

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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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