As Bitcoin struggles to maintain its value, MicroStrategy's aggressive investment strategy is under scrutiny. On April 7, 2025, Bitcoin fell below the $80,000 mark, prompting investor Peter Schiff to criticize the company's Executive Chairman, Michael Saylor, for his high-stakes approach to cryptocurrency investing.
Schiff, known for his bearish views on Bitcoin, took to Twitter to challenge Saylor directly. "Now that Bitcoin is below $80K, if you want to prevent it from crashing below your average cost of $68K, you had better back up the truck with borrowed money today and go all in," he tweeted. This jab comes as MicroStrategy's stock (MSTR) recently experienced an 11% drop, reflecting broader market volatility.
As of the latest reports, Bitcoin is trading at $78,950.85, down 5.36% in the past 24 hours. Its market capitalization stands at $1.56 trillion, with a trading volume of $42 billion, which has seen a remarkable increase of over 190%. Schiff's criticisms are not new; he has consistently questioned the viability of Bitcoin as a safe haven asset, stating, "But Bitcoin was sold as a safe haven/store of value. If during market selloffs it crashes more than other assets, what value does it offer investors?"
The ongoing debate surrounding Bitcoin's stability comes as MicroStrategy continues to bolster its stock value through aggressive Bitcoin acquisitions. The company currently holds over 528,000 bitcoins, valued at approximately $35.63 billion. This strategy reflects Saylor's unwavering confidence in Bitcoin's long-term potential, despite the recent market fluctuations.
In a recent analysis, Wall Street analysts have shown a generally positive outlook for MicroStrategy. According to price targets from 13 analysts, the average target price for MSTR is projected to reach $423.66 over the next year, with estimates ranging from a low of $187.50 to a high of $600.00. This indicates a potential upside of 44.29% from its current price of $293.61.
Furthermore, MicroStrategy has received a favorable average brokerage recommendation of 2.0, suggesting an "Outperform" status from 12 brokerage firms. However, a contrasting estimate from GuruFocus indicates a GF Value for MicroStrategy at $19.54, suggesting a significant downside of 93.34% from the current market price.
Institutional interest in MicroStrategy remains strong. Recently, Thoroughbred Financial Services LLC acquired 1,014 shares valued at approximately $293,000. Other hedge funds, such as Geode Capital Management LLC and Norges Bank, have also increased their stakes in the company, underscoring a growing confidence among institutional investors.
Geode Capital Management raised its position in MicroStrategy by 10.2%, now owning 3,047,625 shares valued at $881,470,000. Meanwhile, Norges Bank has taken a new position in MicroStrategy valued at about $523,981,000. Charles Schwab Investment Management Inc. and Amundi have also made significant acquisitions, further solidifying the company's institutional backing.
In terms of insider trading, MicroStrategy executives have recently made notable purchases. EVP Wei-Ming Shao bought 500 shares on March 20, 2025, at an average price of $85.00 per share, totaling $42,500. CFO Andrew Kang also purchased 1,500 shares on the same day for $127,500. Over the last 90 days, insiders have purchased 8,000 shares worth $680,000 while selling 22,998 shares valued at $7,671,926.
As of April 7, 2025, MicroStrategy's stock opened at $293.61, showing a significant recovery from its one-year low of $101.00, although it remains below its one-year high of $543.00. The company's financial metrics reveal a debt-to-equity ratio of 0.39, a current ratio of 0.71, and a quick ratio of 0.65, indicating a relatively stable financial position despite the market's volatility.
MicroStrategy's recent earnings report revealed a loss of $3.20 per share for the quarter ending February 5, 2025, missing analysts' estimates by a substantial margin. The company's negative net margin of 251.73% and negative return on equity of 19.01% have raised concerns among investors about its long-term viability.
Analysts remain divided on the stock's future. Cantor Fitzgerald recently raised its price target from $613.00 to $619.00, while Sanford C. Bernstein reiterated an "outperform" rating with a $600.00 target price. Conversely, Canaccord Genuity lowered its target from $510.00 to $409.00, and Monness Crespi & Hardt downgraded MicroStrategy from a "neutral" rating to a "sell" with a target price of $220.00.
The mixed signals from analysts indicate a complex landscape for MicroStrategy as it navigates the volatile cryptocurrency market. As Bitcoin continues to fluctuate, the company’s heavy investment strategy is likely to remain a focal point of discussion among investors and analysts alike. With Schiff's criticisms echoing in the background, the question remains: will MicroStrategy's bold approach pay off, or will it lead to significant financial repercussions?
As the cryptocurrency market evolves, all eyes will be on MicroStrategy and its leadership as they chart a path through these uncertain waters.
