Kobeissi Letter stated in a post on X that the market is concerned about MicroStrategy's proposal to increase the authorized shares by 10 billion. Through a combination of convertible notes and debt issuance, MSTR has heavily leveraged itself. The company must issue more debt or equity to continue its Bitcoin buying spree. It added, 'If approved, MicroStrategy's total shares could increase from 330 million to 10.33 billion. The problem is, it currently places the company in a 'lose-lose' situation.'
Felix Hartmann, founder of Hartmann Capital, stated that MicroStrategy's stock price 'will eventually crash, but most short sellers will time it wrong, leading to failed bets against BTC and MSTR.'
Hartmann said, 'In five years, MSTR will first become one of the top five companies by market capitalization, then eventually go bankrupt. We are still too early.' But he added that the opposite could also be true: 'The counterpoint is that in a bull market, the company will be able to utilize more leverage, and repaying the $1-4 billion due in 2027-29 will be a piece of cake when sitting on $300 billion worth of BTC.'
Joe Burnett, head of market research at Unchained, referred to MicroStrategy's current strategy as 'hyperbitcoinization.'
Burnett stated that the company is trading at a premium, allowing it to increase the price of Bitcoin per share through leverage. 'Trading at a premium enables them to sell shares at a price above net asset value, buy more Bitcoin, and reduce leverage—further increasing the price of Bitcoin per share. This happens repeatedly.'
MSTR's stock price has fallen by 20.18% in the past 30 days but has still risen by 342.15% since January 1. (Cointelegraph)

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