-
MicroStrategy’s use of leverage to build its bitcoin trove could deepen a downturn, JPMorgan said.
-
Microstrategy wants to acquire as much bitcoin as possible, founder Michael Saylor has said.
-
Mike Novogratz has warned that too much leverage fueling the bitcoin rally could spark a pullback.
While bitcoin has been smashing to new record highs, a future correction could be made worse by one bullish firm’s massive exposure, JPMorgan said in a note.
“We believe debt-funded bitcoin purchases by MicroStrategy add leverage and froth to the current crypto rally and raise the risk of more severe deleveraging in a potential downturn in the future,” analysts led by Nikolaos Panigirtzoglou wrote on Thursday.
Rising enthusiasm for the token has sent it soaring over $73,000 this week, as newly-formed spot bitcoin ETFs have opened doors to a fresh set of investors. Others are piling in ahead of next…
