MicroStrategy will Crash 80%. But from Where?

How to potentially hedge $BTC

Michael Saylor strikes me as a quintessential huckster. MicroStrategy, his company, operates entirely as a leveraged vehicle for Bitcoin.

He consistently issues shares, diluting MSTR—already a highly leveraged instrument—to acquire more Bitcoin. This structure resembles a pyramid scheme, viable only as long as Bitcoin's price remains favorable.

For context, MicroStrategy's average and median historical crashes have been -88.46% and -89.80%, respectively

To be fair, MSTR has seen a remarkable 3,381% increase from trough to peak since pivoting to a Bitcoin-leveraged fund and beginning BTC purchases in August 2020. This significantly outpaces Bitcoin's own 721% growth during the same period, which should raise concerns.

We all have seen this movie before. And we now have a front row seat. I will cover some potential ways to hedge below.