If the price of Bitcoin drops sharply, $MSTR's leverage will be a double whammy for the price of Bitcoin. People will also sell $MSTR shares.
Discussion
Buying $MSTR is like buying a kind of complexe leveraged spot BTC ETF. BTC goes up, chances are that $MSTR goes up faster, BTC correct, $MSTR correct harder.
Investor should know what is the risk. What I'm not happy about is that it could indirectly impact Bitcoin as well if anything bad is happening and even direct BTC incestors (hodler) would suffer from an additional risk they didn't ask for (even if they would benefit from it as MSTR is boosting BTC price as well to some extend).
Agreed. Though, I feel that the boost that MSTR provides BTC hodlers will ultimately outweigh the damage done if/when it unwinds. Of course, this feeling may be unfalsifiable as the risk/reward factors may prove to be to complex to measure.