MicroStrategy’s strategy is predicated on the price of Bitcoin going higher… it looks like the price will more than likely continue to head higher, so it should continue to work.

However, if there was some sort of Black swan where Bitcoin’s price declined significantly and people didn’t feel comfortable lending MicroStrategy more money, then they could be forced to sell Bitcoin.

This would lead to the price further declining as they are one of the largest holders of Bitcoin.

If this scenario happened Bitcoin would still be fine in the long-term but it would be a major setback.

I think this scenario is unlikely, but possible.

#bitcoin #microstrategy