Michael Saylor’s investment strategy in Bitcoin has exceeded expectations, but is this success sustainable?
Continued Bet on Bitcoin
Strategy has been actively acquiring Bitcoin using borrowed funds, currently holding 499,096 BTC, accounting for nearly 2.4% of total supply. Despite Strategy's stock rising steadily, questions about its long-term sustainability remain.
Risks of Leverage
Strategy's approach involves high risks due to leveraging to buy Bitcoin. This has led to stock price increases despite Bitcoin’s price drop, creating a premium speculation on the market. However, the debt load poses a significant risk, especially if Bitcoin's price further declines.
Market Volatility
The market, including Bitcoin and Strategy shares, is facing high volatility. Strategists from leading banks, such as Deutsche Bank, predict further declines, potentially increasing pressure on Strategy and its assets.
Despite its current success, Michael Saylor's Bitcoin strategy remains under significant pressure due to market volatility and the company's debt burden.
