MicroStrategy share price, $

The worst-case scenario could be that MicroStrategy sells bitcoins to repay its $7.2bn of convertible debt as it matures, which Lebowitz said would be “very problematic if the price is much lower” than when the crypto was bought.

He called MicroStrategy “essentially a leveraged bitcoin holding company”. “The problem with such a leveraged scheme is that the company is putting all its eggs into bitcoin,” he said. “A sharp decline in bitcoin will likely accompany the collapse of MicroStrategy. The other risk, although less likely under the Trump presidency than Biden, is if the Securities and Exchange Commission (SEC) decides to investigate MicroStrategy over their ‘unique’ strategy.”