A Closer Look At MicroStrategy’s “Intelligent Leverage” Scheme

8 months ago 51

How MicroStrategy’s Bitcoin Model Risks Collapsing Under Its Own Weight

Quadrant Research Group

The Capital

Written by: Ignacio Pericet, Founder.

”One look is worth a thousand words”, Fred R. Barnard. Michael Saylor with Bitcoin Symbol. Source: Alyssa Schukar, Wall Street Journal.

Few moves have been as audacious, and polarizing as MicroStrategy Incorporated’s foray into Bitcoin. Once recognized solely as a business intelligence firm, MicroStrategy has become synonymous with large-scale cryptocurrency investments. Under the stewardship of Michael Saylor, its co-founder and executive chairman, the company has executed an aggressive strategy of acquiring Bitcoin.

For some, this bold approach exemplifies visionary leadership and a keen understanding of digital asset potential. For others, it raises pressing questions about risk management, governance, and the sustainability of leveraging a volatile asset to such an extreme degree. With a portfolio exceeding 250,000 Bitcoin as of the end of 2024, this strategy is not merely a corporate tactic, but a defining case study in the intersection of traditional finance and digital innovation.

MicroStrategy’s Capital Raising Strategy to Acquire Bitcoin:

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