Analyst Says MicroStrategy Could Trigger a Bitcoin Cascade Worse Than Mt. Gox or 3AC
The post Analyst Says MicroStrategy Could Trigger a Bitcoin Cascade Worse Than Mt. Gox or 3AC appeared on BitcoinEthereumNews.com.
Analysts voice concerns that MicroStrategy, the largest corporate holder of Bitcoin (BTC), may be sitting on a financial time bomb that could ripple through the entire crypto market. With over 597,000 BTC, equivalent to 3% of Bitcoin’s total supply, the business intelligence company-turned-Bitcoin proxy now poses what some call “crypto’s biggest liquidation risk.” MicroStrategy’s $71 Billion Bitcoin Bet Raises Systemic Risk Concerns Bitcoin hit another all-time high (ATH) on Sunday, steadily edging towards the $120,000 threshold. This time, however, the surge comes amid institutional interest rather than retail buying momentum. Chief among them is MicroStrategy (now Strategy), which holds 597,325 BTC, worth over $71 billion as of this writing. Top Public Bitcoin Treasury Companies. Source: Bitcoin Treasuries. Leshka.eth, a KOL and investment strategist, laid out the scale and fragility of MicroStrategy’s Bitcoin play. “Everyone’s celebrating while this creates crypto’s biggest liquidation risk,” Leshka wrote. The analyst notes that MicroStrategy’s $71 billion position in Bitcoin has been built on top of $7.2 billion in convertible debt raised since 2020. Its average BTC purchase price sits around $70,982. Strategy has acquired 4,980 BTC for ~$531.9 million at ~$106,801 per bitcoin and has achieved BTC Yield of 19.7% YTD 2025. As of 6/29/2025, we hodl 597,325 $BTC acquired for ~$42.40 billion at ~$70,982 per bitcoin. $MSTR $STRK $STRF $STRD https://t.co/xvWnSkfukS — Michael Saylor (@saylor) June 30, 2025 If Bitcoin were to fall below that mark, the paper losses could start applying real pressure on its balance sheet. Unlike spot ETFs (exchange-traded funds), MicroStrategy lacks cash buffers or redemption mechanisms. This means any downturn in Bitcoin’s price would directly hit the company’s valuation and could, in an extreme case, force asset sales to cover liabilities. “This is not just a high-beta Bitcoin play—it’s a leveraged bet with very little margin for error,” Leshka warned.…
Filed under: News - @ July 13, 2025 9:09 pm