Crypto Accelerator Resource Alliance Partners Raise Concerns About MicroStrategy’s Bitcoin Liquidation Event, But Overlook Certain Key Details.
More than four years later Microstrategy‘S Bitcoin Acquisition strategy continues to be a polarizing topic in the crypto space and broader financial circles.
Questions remain about how the company’s debt-backed Bitcoin purchases affect its health and whether they also pose a risk to the digital asset itself.
The debates about these questions have reached their peak in the company in recent weeks has increased purchases And Plans revealed to raise an additional $42 billion to purchase Bitcoin over the next three years.
In the most recent case, fears have surfaced, expressed by key contributors to the leading crypto accelerator alliance, suggesting that the company’s liquidation price may not be that far off and that such an event could result in an outcome 100 times worse than could lead to Terra and FTX. However, a key consideration appears to be missing from their analysis.
MicroStrategy liquidation price around $60,000?
The alliance’s key contributors, Imran Khan and Qiao Wang, expressed concerns about MicroStrategy’s Bitcoin acquisition strategy an episode from November 27th of their Good Game podcast have recently been making the rounds online, thanks Reporting from Wu Blockchain.
Alliance DAO partners said on the podcast that they hope Bitcoin does not fall below 58,000 in the next four years. Because that is the liquidation price of MicroStrategy. If it happens, it could trigger a crisis 100 times larger than Luna and FTX. The best scenario is…
— Wu Blockchain (@WuBlockchain) December 22, 2024
During the…
