Part 8/11:
Is MicroStrategy's Approach Wise?
The consensus is nuanced. MicroStrategy’s leverage multiplies gains during a bull run but poses significant risks if Bitcoin’s price plummets. According to financial analysis, a catastrophic decline in Bitcoin to around $13,000 could threaten the company's stability—a scenario deemed unlikely given current market valuations.
Moreover, the company’s use of favorable debt terms suggests that their risk management is prudent relative to market conditions. Still, leveraging assets always entails increased exposure to market volatility.