Part 6/11:
While the strategy appears bold, it’s crucial to evaluate risk carefully. The main danger is the potential for Bitcoin’s price to decline significantly. MicroStrategy’s debt—now totaling roughly $8.25 billion—has favorable terms, including zero-percent interest rates and high-conversion thresholds.
Mathematically, if Bitcoin were to fall to around $13,000 from a recent $110,000, MicroStrategy could potentially approach insolvency, as its Bitcoin holdings would no longer cover its liabilities. However, current and foreseeable Bitcoin valuations (above $13,000) suggest that the company’s risk of complete collapse remains low, especially given its conservative debt terms and strategic management.