MicroStrategy shares have dropped 46% in the last six weeks.
The Maverick of Wall Street called MSTR a Ponzi scheme.
MicroStrategy raised $6 billion in convertible notes to buy BTC with more money to come.
MicroStrategy, the largest corporate holder of Bitcoin (BTC), has seen a significant drop in its share price. MSTR has fallen 46% in the last six weeks, including an 8% crash on Monday, closing the year at $302.
Is MicroStrategy’s Bitcoin Strategy a “Ponzi Scheme”?
“The Maverick of Wall Street,” a finance and stock market expert, argues that MicroStrategy is running a “Ponzi scheme.” They claim the company dilutes its shares to pump Bitcoin’s price. MicroStrategy has raised $6 billion in convertible bonds to buy more BTC, with plans to add another $18 billion soon.
However, this strategy may be reaching its limit. Further diluting shares could harm the company, as “the requirement for an upside move in Bitcoin keeps going higher to compensate for diluting the shares.”
Read also : MicroStrategy Risks Mount if BTC Slips: Michael Saylor Eyes Trillionaire Tag
MicroStrategy $MSTR absolutely crushed over the past 6 weeks! Down a staggering 46% 
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The post Bitcoin Bets Backfire? MicroStrategy Shares Down 46% appeared first on Coin Edition.
