JPMorgan analysts believe MicroStrategy's reliance on debt to fund Bitcoin purchases is adding leverage and volatility to the current cryptocurrency rally, according to a recent investor note. They warn that this strategy could lead to a more severe “debt reduction” process if the market experiences a downturn.

MicroStrategy's latest Bitcoin buying spree was reportedly funded by $1.2 billion in senior notes sold earlier this year, for a total of $821 million between February 26 and March 10. #BTCYarilanma