MicroStrategy has issued an additional 21 billion to buy BTC, already losing 4.2 billion and still doubling down!

MicroStrategy's recent actions can only be described as extreme. On one hand, they are issuing more stock to buy $BTC, while on the other hand, they are collateralizing the purchased Bitcoin to continue financing, and then issuing more stock… This is no longer just ordinary FOMO (fear of missing out); it resembles a set of "left foot stepping on the right foot to fly" techniques, constantly drawing circles in mid-air. As long as Bitcoin keeps rising, no one can expose the truth. But the problem is, the market never follows the script.

From this financial report, in the first quarter, due to the drop in Bitcoin prices, the company recognized a loss of 4.2 billion USD, equivalent to a loss of 16.49 USD per share. At the same time, MicroStrategy announced the initiation of a 21 billion USD common stock issuance plan to continue buying BTC, raising the BTC return target from 15% to 25%, and the revenue target from 10 billion directly soaring to 15 billion—doesn't this count as "doubling down on faith"? But the problem is, their asset volatility essentially relies entirely on BTC; the core business has long been submerged by virtual asset investments, and to some extent, they are no longer a software company but a leveraged “quasi-ETF” Bitcoin position operating under the guise of a listed company.

You might think they are investing, but in reality, they are concocting alchemy. The money from stock financing goes to buy coins, and when the coins rise, they continue to collateralize for financing to buy more coins. It sounds beautiful, but in reality, it's a snowball effect of multiple leverages. In other words, MicroStrategy's growth model is deeply tied to the coin price; when the coin rises, all is well, but when the coin falls, it feels like walking on a paper bridge that collapses layer by layer.

The most critical point is that this structure is no longer just “their own business.” Currently, MicroStrategy holds over 550,000 BTC, accounting for 2.6% of the total circulating supply. Once this position collapses, it will not only mean total loss for them, but the entire market will tremble along, potentially becoming the trigger for a new round of crypto market panic. It is not just a thunder; it is a “super thunder” that can ignite a secondary crisis of confidence.

From a regulatory perspective, this kind of gameplay clearly walks a fine line in the gray area. In traditional finance, if a listed company relies on continuous issuance to speculate on a highly volatile asset, or repeatedly finances using the assets it purchased to buy back similar assets, it would have long been under the SEC's close scrutiny.