MicroStrategy Buys $43M Bitcoin, Defies S&P ’Junk’ Rating
MicroStrategy bought 390 BTC for about $43 million at an average price of $114,562, raising its total reserves to 640,808 BTC (around $47.44 billion). The purchase came despite S&P Global’s decision to downgrade the firm to a B- credit rating, citing a heavy concentration of Bitcoin on its balance sheet. Following the announcement, MSTR shares rose 2.27% to $295.63, although they remain down 4.8% over the past month. Analyst Adam Livingston argued that S&P’s rating unfairly penalizes corporate adoption of Bitcoin, noting that U.S. Treasuries would be classed as high-quality capital. Bitcoin traded at about $114,236, down 1.48% over 24 hours as volatility remained subdued. Traders may view the renewed Bitcoin purchase as a bullish signal for both BTC and corporate treasury strategies, though substantial exposure carries volatility and credit risks.
Bullish
MicroStrategy’s continued accumulation of Bitcoin despite a ’junk’ credit rating signals strong corporate confidence in BTC as a treasury reserve asset. This purchase reinforces positive sentiment and could support Bitcoin prices, making the outlook bullish. In the short term, subdued volatility and a modest price dip suggest limited downside, while renewed institutional demand may drive price appreciation. Over the long term, persistent buying by a major corporate holder may stabilize BTC’s market and encourage further institutional adoption, although concentrated exposure raises risk of heightened volatility and credit concerns.