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Is MicroStrategy a bubble? What is the risk for Bitcoin’s price?

MicroStrategy offers leveraged Bitcoin exposure, amplifying risk but potentially offering higher returns with repurchasing options.

MicroStrategy’s aggressive Bitcoin (BTC) acquisition strategy has captivated investors, but is it sustainable? With plans to raise $42 billion in three years, the company is taking bold steps to finance its Bitcoin buying spree.

For retail investors, the question isn’t just whether MicroStrategy’s moves are driving Bitcoin above $100,000—it’s whether this approach is stable or setting the stage for a bubble.

MicroStrategy’s “21/21 Plan” outlines a massive capital raise, split evenly between equity sales and fixed-income securities. Recently, it raised $4.6 billion by selling 13.6 million shares, alongside a $2.6 billion convertible bond issuance. Together, these raised enough to buy 78,890 Bitcoin ($6.62 billion), underscoring the company’s commitment to its strategy.

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