Concerns are mounting over MicroStrategy's significant Bitcoin exposure, which could pose a risk to the broader crypto market. The company currently holds 671,268 BTC, representing over 3.2% of the total circulating supply. This substantial investment has been financed through $8.2 billion in convertible bonds and $75 billion in preferred shares.
Analysts warn that if Bitcoin's price falls below $13,000, MicroStrategy could face insolvency, potentially leading to forced liquidation of its Bitcoin holdings. Such a scenario could exacerbate market volatility and trigger a downward spiral in the cryptocurrency ecosystem.
MicroStrategy's Bitcoin Holdings Pose Risk Amid Potential Price Drop
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