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Investors have generally reacted positively, as evidenced by the premium MicroStrategy's stock commands over its net asset value (NAV). This premium indicates that investors view the stock as more than just a representation of Bitcoin assets—it's a leveraged bet on Bitcoin's future performance.
Risks and Market Fluctuations
While MicroStrategy's strategy appears to work well in a bullish market, the potential implications of a sharp decline in Bitcoin prices loom large. Notably, analysts estimate that Bitcoin would need to decrease in value by as much as 80% to threaten MicroStrategy’s financial stability.