MicroStrategy, led by co-founder Michael Saylor, has pursued an aggressive Bitcoin acquisition strategy, becoming the largest corporate holder of Bitcoin with 447,470 BTC. Critics argue this reliance on a volatile asset exposes the company to significant financial risks. A sharp drop in Bitcoin’s price could jeopardize its balance sheet and raise debt repayment concerns. Saylor, however, believes in holding on to Bitcoin, asserting it is a long-term strategy. Funding efforts started with a $250 million purchase in 2020, followed by various debt issuances including convertible notes, raising billions. Recently, the company proposed to increase its share count to raise capital while aiming for $42 billion over the next three years to fund further Bitcoin purchases and related initiatives. Critics, including finance experts, caution that without a clear exit strategy, the approach could resemble a Ponzi scheme. Despite concerns about stock dilution and liquidity during bear markets, proponents argue MicroStrategy’s strategy could leverage Bitcoin’s potential appreciation. As of January 2025, MicroStrategy's stock saw significant gains alongside Bitcoin's price increases since their initial purchases. The company aims to keep acquiring Bitcoin, viewing it as a hedge against economic uncertainties.

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