MicroStrategy issues a stark warning on Bitcoin's 93% historical crash risk, even as the firm maintains a massive BTC treasury that leaves it barely 2% above its average cost basis.
The guide highlights Bitcoin's historical 93.1% drawdown and cautions that long-term conviction does not protect against short-term liquidation, signaling downside risk.
MicroStrategy's Bitcoin guide warns of a potential 93% crash in Bitcoin, which would severely impact the company's valuation given its massive BTC holdings.
MicroStrategy has released a Bitcoin guide highlighting historical volatility, including a 93.1% peak-to-trough crash. While the document emphasizes survival and risk management, it contrasts sharply with the company's own aggressive accumulation strategy. With 845,050 BTC held at an average cost of $75,412, MicroStrategy remains highly sensitive to market downturns despite its cautionary public stance.
The company aims to educate investors on the necessity of position sizing and risk management, noting that historical data shows Bitcoin has experienced a 93.1% drawdown in the past.
With an average cost of $75,412 per BTC and a current market price near $77,106, the company is currently holding a slim profit margin of approximately 2%.