Part 7/10:
Leverage and Volatility: Leverage can amplify losses as dramatically as it amplifies gains. A significant drop in Bitcoin's price could compel MicroStrategy to liquidate assets, locking in losses and triggering a negative feedback loop.
Market Sentiments: As MicroStrategy is not merely a Bitcoin proxy but also a company tied to market perceptions of Saylor’s strategy, its stock price is influenced by sentiments, market trends, and competition.
The Upside Potential
Despite the risks, several upside potentials could contribute to the company’s growth: