Macrostrategy is expected to release its Q2 earning on 1st August. Prediction show a decline in revenue amidst uncertainty in profitability.purchases every month except in July, 2024 and September, 2020. This accumulation has pushed the company to become the largest corporate BTC holder in the world.
This BTC holding makes a compelling case for MSTR to drive its market cap to $28.65 billion, a significant rise from $9 billion a year ago.However, MicroStrategy accumulates its holdings through long-term, low interest and share insurance. According to the Q1 2024 earning reports, the company has long-term liabilities of $3.5 billion.
This approach gives investors an illusion that MicroStrategy holds most BTC while it doesn’t. This is a huge risk to creditors, especially if the company goes bankrupt. Such may happen because Macrostrategy is shielded from recourse if its parent firm, MicroStrategy, goes bankrupt.