Bitcoin Is Only Bought by Dying Companies — Bloomberg
Stagnating companies are increasingly following the example set by Michael Saylor of MicroStrategy, using corporate and borrowed funds not for business development but to purchase cryptocurrency in an attempt to attract investors, according to Bloomberg.
Analysts warn that if the market collapses, such companies could face the risk of insolvency due to the loans they took out to buy Bitcoin. The growing trend of corporations investing in digital assets, rather than improving their core operations, raises concerns about the long-term sustainability of this strategy.
While Bitcoin remains a popular investment choice, it brings significant risks to businesses that rely on borrowed funds to acquire it.
