MicroStrategy's Bitcoin Bet: A Sudden Shift

MicroStrategy, a company known for its big Bitcoin investments, did something unexpected. Instead of buying more Bitcoin, they sold a lot of their own stock. This is a big deal because they usually buy Bitcoin all the time. Last week, they sold stock worth $747. 8 million but didn't buy any Bitcoin. This broke their usual pattern of constantly adding to their Bitcoin holdings. They still have a lot of Bitcoin, about 671, 268 BTC, which is worth around $64 billion now. But they didn't add any new Bitcoin to their pile. Instead, they sold 4. 54 million shares of their stock. They have more than enough room to sell more stock if they want to, with over $41 billion still available. MicroStrategy has been buying Bitcoin for a while, and they've spent about $50. 33 billion so far. On average, they've paid $74, 972 for each Bitcoin. Right now, Bitcoin is worth about $89, 000, so they're doing pretty well. Their Bitcoin is worth about 19% more than what they paid.They also have a lot of cash on hand, $2. 19 billion to be exact. This is up from $1. 44 billion they had earlier in December. Building up cash instead of buying more Bitcoin is a big change for them. They've been buying a lot of Bitcoin since mid-2024, going from about 400, 000 BTC to over 671, 000 by the end of 2025. But their stock, MSTR, isn't doing so well. It's only up a little bit recently, about 0. 26%. But overall, it's down a lot from its highs in July. It's lost about 64% of its value since then. Selling pressure has been strong, and every time it tries to go up, it gets pushed back down. Technical indicators aren't looking good either. The Supertrend indicator is at $201. 87, which is way above the current price. The SAR dots are at $191. 01, which also shows a bearish trend. For things to turn around, these indicators need to flip below the current price. Right now, the stock has support at $155-$160, which is the December low. If it goes below $155, it could trigger more selling and drop to $125. That's another 24% down from where it is now. Resistance is at $175-$180 initially, but there's a lot of overhead supply at $190-$200, where the technical indicators are sitting.