🚨 Strategy wants to raise an additional $21B to buy #Bitcoin, despite a net loss of $4.2B in Q1/2025

📌 #Strategy (formerly #MicroStrategy) has just announced a $21 billion equity offering plan to continue its Bitcoin accumulation strategy, even though it recently reported a net loss of $4.2B in Q1/2025 due to a 30% correction of $BTC.

📌 As of the end of April 2025, the company is holding 553,555 $BTC (~$37.9B), with an average purchase price of $68,459/BTC. In Q1 alone, they spent an additional $7.66B to acquire 80,715 $BTC.

-> According to the announcement from Strategy itself, the Bitcoin standard balance sheet strategy is being intensified: Raising the expected profit from $10B to $15B with expected ROI from 15% to 25%. Clearly, this is a company's ploy to issue more debt, as they cannot be sure where the price $BTC will head.

📌 Although #MSTR stock has rebounded thanks to the rise in BTC, long-term risks remain: if #BTC reverses or enters a deep downtrend, the pressure to violate the "never sell" doctrine will significantly increase.

📌 Continuously using leverage to buy BTC is a double-edged sword; if BTC rises, they win big. But if BTC experiences a deep correction or extends its downtrend, the accumulated debt will become a burden forcing them to break the commitment of “never sell.” And with such a large volume of holdings, even a single sell signal from them could create a ripple effect – not just with the price of $BTC but also market confidence. That is the real systemic risk.