Rising Risk in MicroStrategy's Infinite Money Glitch
Portfolio Pulse from
MicroStrategy is employing a strategy of borrowing money through convertible debt to purchase Bitcoin, aiming to drive its price higher. This approach presents rising risks for the company.
January 16, 2025 | 4:00 pm
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MicroStrategy is using convertible debt to purchase Bitcoin, which could increase the company's risk exposure due to Bitcoin's volatility.
MicroStrategy's strategy of using borrowed funds to invest in Bitcoin could lead to increased financial risk due to the inherent volatility of Bitcoin prices. This could negatively impact the company's stock price if Bitcoin's value decreases.
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