"MicroStrategy, Large Bitcoin Transactions Possible for Asset Conversion"

Source
YM Lee

Summary

  • "MicroStrategy" has been reported to pose a temporary risk to the market due to its aggressive Bitcoin purchases.
  • Virtual asset analysts have stated that such a strategy by "MicroStrategy" aligns with the company's asset conversion objectives.
  • If "MicroStrategy"'s stock price does not consistently rise in relation to Bitcoin, the risk is significant.

An analysis has emerged that MicroStrategy's (MSTR) aggressive Bitcoin (BTC) purchases could act as a temporary risk to the market. According to a report by Crypto Policy on the 28th (local time), a virtual asset analyst warned, "MicroStrategy's Bitcoin strategy aligns with the company's asset conversion objectives. If shareholders do not convert their assets into stocks before the conversion, MSTR may have to liquidate Bitcoin to address shareholder conditions."

If MicroStrategy's stock price does not consistently rise in relation to Bitcoin as it does now, such a situation could arise.

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YM Lee

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