Analyst: MicroStrategy's BTC strategy is a giant Ponzi Scheme

Analyst Jacob King referred to MicroStrategy's BTC-centric business model as a 'huge eyewash', deeming it unsustainable and destined to collapse. King said that MicroStrategy's strategy of issuing bonds to buy BTC is a "giant Ponzi eyewash." He explained that the company's model relies on a feedback loop: issuing debt or equity to buy BTC will drive up the price, thereby increasing MicroStrategy's market value. A higher valuation allows the company to raise more funds to further purchase BTC. King warned that the entire cycle depends on the continuous rise in BTC price. King added, "When BTC stagnates or collapses, the entire structure will collapse."