Opinion: Companies recently imitating MicroStrategy's Bitcoin strategy should proceed with caution

ChainCatcher news, according to BusinessInsider, Bitget CEO Gracy Chen stated that the inherent speculative trading in the cryptocurrency market is becoming a thing of the past. There is a growing interest from institutions in building reserves based on Bitcoin; however, caution is necessary for companies attempting to replicate the Bitcoin investment strategy model adopted by MicroStrategy, as the Bitcoin prices faced by new entrants are significantly higher than the prices at which MicroStrategy initially purchased.

If the price of Bitcoin suddenly drops, companies that have leveraged their purchases of Bitcoin will also face greater risks: while the price of cryptocurrencies may decline, debt obligations do not decrease.