From Nasdaq: 2025-06-15 04:55:00

MicroStrategy (NASDAQ: MSTR), now known as Strategy, has seen a surge in its stock price due to its bullish position on Bitcoin (CRYPTO: BTC). The company holds 582,000 Bitcoins, with plans to raise up to $42 billion to add more. Despite its success, there are concerns that continually buying Bitcoin could hurt the stock’s value in the long run. Investors may want to consider holding Bitcoin directly instead of investing in Strategy, as the company’s future success is uncertain given its heavy reliance on cryptocurrency. Strategy’s stock is considered ultra-risky and speculative, making it unsuitable for most investors.

As Strategy continues to buy Bitcoin at high prices, the need for capital raises increases. The company’s core operations do not generate cash, leading to concerns about ongoing financial needs. While Strategy’s stock has performed well recently, it may struggle to keep up with Bitcoin’s rising valuation. Investors should be cautious about the potential for dilution and downward pressure on the stock due to continuous stock offerings for Bitcoin purchases. With Strategy’s cash outflow exceeding $28 billion, its reliance on cryptocurrency poses significant risks for investors.



Read more at Nasdaq: The Fundamental Problem With MicroStrategy’s Bitcoin-Buying Plan