MicroStrategy has accumulated 205,000 Bitcoins, which is worth about $14 billion at the current market price. This is almost as close as the net asset value of Grayscale’s Bitcoin spot ETF, IBIT, which is $15.9 billion. With MicroStrategy’s approach, once the debt issuance plan is successfully completed, it is expected that they will purchase more Bitcoins in the market. The act of buying Bitcoins through borrowing is the leverage effect and bubble risk that JPMorgan is concerned about. MicroStrategy suffered during the bear market of cryptocurrencies, and its stock price lingered around $140 for a long time, which is more than ten times less than yesterday’s closing price of $1,782.
MicroStrategy Raises $500 Million in Convertible Bonds with Conversion Price Soaring to $2,327, JPMorgan Worries About Bubble Risk