Reactions Related to MicroStrategy's Bitcoin Strategy: Hidden High Risks
MicroStrategy and Its Bitcoin Holdings Worth Over 62 Billion USD
MicroStrategy is currently the largest publicly traded Bitcoin holder in the world, with over 582,000 BTC, worth about 62 billion USD. This amount represents more than 2.77% of the total Bitcoin supply, unprecedented in the history of publicly traded companies. The aggressive accumulation strategy has drawn attention but has also been criticized for potential risks and sophisticated financial leverage.
The Strategy of Diluting Shares and The Continuous Cycle of Buying Bitcoin
According to deep analyses, MicroStrategy employs a "vicious cycle" strategy: issuing shares or taking on debt, using the proceeds to buy Bitcoin, then announcing this holding, driving the stock price up, and repeating. In 2025, the company added 133,850 BTC to its balance sheet, with the most recent purchase being 26,695 BTC last month. Notably, the plan to issue an additional 1 billion USD in shares through an ATM model continues to raise concerns about the potential dilution of shareholder value.
"They are using their own equity to buy Bitcoin in a vicious cycle — and most investors are not fully aware of this dangerous risk," CHAIN MIND warns.
New Accounting Regulations Result in 5.9 Billion USD Expected Profit Loss
Notably, recent accounting regulations require publicly traded companies to disclose unrealized losses on digital assets. For MicroStrategy, this represents a paper loss of 5.9 billion USD in the first quarter of 2025. This information has led to a class-action lawsuit from shareholders, accusing the company of failing to disclose all related risks.
Disaster Risk: Falling Bitcoin Prices Could Break MicroStrategy
MicroStrategy's average purchase price of Bitcoin is currently 70,000 USD. A drop below this level could put significant pressure on the corporation's balance sheet. Analysts warn that if Bitcoin falls 22% below 70,000 USD, the risk of mass liquidation could emerge, shaking the global cryptocurrency market. Currently, other large corporations own about 764,070 BTC, with MicroStrategy holding over 71%, while other major investors like Marathon Digital and Riot Platforms hold insignificant amounts.
If MicroStrategy is forced to sell off, the consequences would not only affect shareholders but could also trigger massive sell-offs across the cryptocurrency market.
Why Is This Risk Important for Bitcoin Investors?
CHAIN MIND concludes clearly: "If you hold Bitcoin, your fate is currently tied to MicroStrategy. You need to understand what that means."
The article has sparked lively debate, raising a big question: Is MicroStrategy driving the price surge of Bitcoin or merely a model of excessive leverage that could lead to a collapse similar to FTX? Understanding this elite strategy is key for investors to make the right decisions.
Source: https://tintucbitcoin.com/microstrategy-mua-btc-ap-luc-hay-nguy-co/
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