MicroStrategy's strategy of issuing bonds to buy BTC carries huge risks: BitMEX Research

In a recent report, BitMEX Research pointed to the substantial risk in MicroStrategy's strategy of issuing bonds to buy Bitcoin (BTC), according to The Daily Hodl. MicroStrategy's BTC holdings were primarily amassed through debt issuance. However, BitMEX noted that BTC remains extremely volatile and that anything can occur. Currently, MicroStrategy has five outstanding bonds, while two others have been completely called and paid for. The maturities and bondholder option dates are spread between 2027 and 2031. If BTC plunges to around $15,000 during the maturity dates of the bonds, BitMEX cautioned that MicroStrategy's BTC holdings could face a forced liquidation.