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Viewpoint: A sharp decline in BTC price could jeopardize MicroStrategy's debt repayment ability
PANews reported on January 11th that according to Cointelegraph, finance professor David Krause said that a significant drop in the BTC price could seriously affect MicroStrategy, endangering its debt repayment ability and potentially leading to financial difficulties or bankruptcy, thus triggering stock dumping. Financial analyst Jacob King stated that when the stock price of MicroStrategy is higher than the net value of its BTC assets, the company will raise funds through debt or equity to purchase more BTC. This cyclical strategy only works when BTC continues to pump, and if BTC stagnates or crashes, this cycle will collapse.