South African investor Vinny Lingham expressed concerns about MicroStrategy's strategy involving large amounts of Bitcoin.

Lingham's Statement

Vinny Lingham, known as the 'Bitcoin Oracle,' suggests that MicroStrategy's massive leveraged position in Bitcoin could represent a greater threat to the cryptocurrency market than the collapse of FTX. He emphasized that excessive leverage exposes both the company and the market to significant risks.

MicroStrategy's Stance on Bitcoin

MicroStrategy, founded by Michael Saylor, is one of the largest Bitcoin holders with over 250,000 BTC. This has made its stocks more profitable than the S&P 500 since January 2024, and Saylor expresses satisfaction with these results.

Consequences and Potential Risks

Lingham warns that if Bitcoin's price falls, MicroStrategy may be forced to sell large volumes, potentially causing a ripple effect in the market similar to the FTX collapse. He notes that Bitcoin maximalists might underestimate the risks of this strategy.

While MicroStrategy's approach could benefit from a rise in Bitcoin, Lingham highlights the need for discussion about potential threats from high leverage.