Bitcoin News Today: MicroStrategy's 'Never Sell' Bitcoin Policy Wavers While Amassing $1.44B in Reserves

MicroStrategy Faces Criticism Amid Bitcoin Turbulence

Recent sharp fluctuations in Bitcoin’s price have put MicroStrategy’s bold accumulation tactics under the microscope, with economist Peter Schiff at the forefront of the criticism against CEO Michael Saylor. After Bitcoin dropped 7.82% to $84,631, Schiff branded Saylor as “Wall Street’s biggest con man” and accused MicroStrategy of running a deceptive business model. This backlash comes on the heels of the company’s announcement of a $1.44 billion cash reserve intended to stabilize dividend payouts—a move that appears to contradict its previous commitment to never selling its Bitcoin holdings.

MicroStrategy has become the largest corporate owner of Bitcoin, holding 650,000 BTC valued at $48.38 billion. The company increased its cash reserves by selling 8.214 million shares of its Class A stock in late November. This action is part of a broader strategic shift, which also includes lowering its 2025 Bitcoin yield targets from 30% to a range of 22%–26%, and reducing its projected dollar gains from $20 billion to between $8.4 billion and $12.8 billion. With these changes, MicroStrategy now has enough liquidity to cover preferred stock dividends for 21 months, though its market capitalization of $45 billion still trails the $55 billion value of its Bitcoin assets.

Schiff’s criticism extends beyond MicroStrategy, as he characterizes Bitcoin as a speculative instrument lacking the tangible and industrial value that gold possesses. He contends that Bitcoin’s price volatility highlights its subjective worth, in contrast to gold’s physical attributes and widespread institutional acceptance. This perspective is reflected in recent performance: in 2025, gold outpaced Bitcoin by 58%, with Bitcoin declining 12%, as central banks and asset managers increasingly turn to gold for reserve stability.

The market’s response to MicroStrategy’s strategic adjustments has been mixed. Despite the company acquiring an additional 130 BTC in November at an average price of roughly $89,960 each, its stock has dropped 41% since the start of the year. Analysts have pointed out the growing disparity between MicroStrategy’s market value and the worth of its Bitcoin holdings, raising concerns about operational risks and shareholder dilution. JPMorgan has also cautioned that the company’s potential removal from the Nasdaq-100 index could result in $9 billion in capital outflows.

Michael Saylor has defended the decision to build a cash reserve, describing it as a way to manage short-term market instability without abandoning the company’s long-term Bitcoin vision. Nevertheless, critics argue that this move contradicts MicroStrategy’s previous anti-fiat stance. Commentator Jacob King noted, “They spent years dismissing fiat currency, yet now they’re bailing themselves out by selling stock.”

Meanwhile, Bitcoin ETFs have seen a modest rebound, with $70 million in weekly inflows after a month of outflows, keeping the debate alive over Bitcoin’s place in institutional investment portfolios. For now, both MicroStrategy’s approach and Saylor’s leadership are under renewed scrutiny as the market continues to test the durability of their leveraged Bitcoin strategy.