In-depth Analysis of MicroStrategy's Opportunities and Risks: Davis Double-Play and Double-Kill

The article analyzes that BTC appreciation drives both profit growth and market valuation expansion, creating a positive premium for its stock. However, it warns of the risks stemming from BTC volatility, which could trigger the "Davis Double-Kill"—a downward spiral of declining profits and valuation contraction. The piece also discusses MicroStrategy’s leveraged financing strategy, its potential to amplify BTC price fluctuations, and how convertible bond dynamics could impact stock performance even before bond maturity. Read more