▫️On December 31, 2024, MicroStrategy's stock fell by 8% after they announced the purchase of a new quantity of Bitcoin.
🔻This drop caused investors to worry about the company's strategy, as they are using debt (leverage) to buy Bitcoin, which could be risky if the price of Bitcoin suddenly drops.
MicroStrategy is known for its strong investment in Bitcoin, buying large quantities of it as part of their strategy. However, their reliance on loans to buy Bitcoin has worried analysts and investors, as the risks could be significant if market conditions change.
What do you think about the situation? Could a drop in Bitcoin's price cause serious problems for MicroStrategy?