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While the risks are evident, the model itself is legal and does not fall under the definition of a Ponzi scheme. The focus on Bitcoin speculation places MicroStrategy in a unique, albeit precarious, market position.
Emerging Challenges
Despite its successes, MicroStrategy faces significant future challenges. The introduction of Bitcoin Exchange-Traded Funds (ETFs) offers investors simpler means to gain Bitcoin exposure, potentially drawing interest away from MicroStrategy's stock. Additionally, looming tax reforms could impose new liabilities on corporate holders of Bitcoin, as unrealized gains may soon be taxed thanks to recent changes in US tax law.