Doubts begin to circulate about the sustainability of MicroStrategy’s debt. To tell the truth, since MicroStrategy started betting everything on Bitcoin a few years ago, every time there is a significant correction in the price of BTC, doubts about the sustainability of its debt increase.
The debt of MicroStrategy
The fact is that MicroStrategy at a certain point started to go into debt to purchase Bitcoin. Furthermore, it has actually never stopped, given that the first purchase was made in August 2020, while the last one was made just a few days ago.
Initially, the company was purchasing BTC using cash it had on hand, or by raising capital from various investors.
At a certain point, however, to be able to continue purchasing BTC, it began to issue debt, and in particular bonds.
Currently, with a market capitalization of approximately 84 billion dollars, the company has accumulated a debt exceeding 4 billion dollars, while its 450,000 BTC have a total market value
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