🔥🚀 MicroStrategy has continued its aggressive Bitcoin acquisition strategy, recently purchasing 10,107 Bitcoins for $1.1 billion, bringing its total holdings to 471,107 Bitcoins worth $46.96 billion.
The firm has spent $20.5 billion on Bitcoin since October, funding acquisitions through equity and debt issuance, including a recent issuance of 2.76 million shares. While this strategy has boosted its stock and attracted conservative investors, it has drawn criticism for its reliance on debt and exposure to Bitcoin’s volatility.
The company plans to raise additional capital, with $18 billion in new debt proposed, but faces risks, including tax liabilities on unrealized gains under the 2022 Inflation Reduction Act.
Despite its stock rising alongside Bitcoin prices, MicroStrategy faces challenges if Bitcoin’s value declines, potentially leading to significant financial strain. Critics caution that its approach could collapse under adverse market conditions.
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