Unsustainable business model: MicroStrategy’s Bitcoin strategy involves issuing debt to buy Bitcoin, which creates a feedback loop inflating their market value. However, this model may collapse if Bitcoin prices stagnate or decline, posing grave risks to their financial stability.
Critique on volatility dependency: Jacob King’s analysis highlights the significant vulnerabilities in MicroStrategy’s reliance on the volatile cryptocurrency market. Such dependence on the perpetual increase of Bitcoin poses long-term sustainability concerns for their entire business strategy.
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