OxChain pointed out that since 2020, MicroStrategy has transformed from a traditional software company into a significant player in the Bitcoin market, currently holding around 582,000 BTC, valued at nearly $61 billion.\u00a0<\/p>\n
![\"Bitcoin\"](\"https:\/\/www.newsbtc.com\/wp-content\/uploads\/2025\/06\/GthI7s_XQAARVpQ.png?w=860&resize=860%2C489\")
<\/p>\n
However, OxChain claims that this impressive figure is underpinned by leverage, debt, and shareholder dilution, rather than genuine conviction in the cryptocurrency.<\/p>\n
The analyst outlined Strategy’s approach as a \u201ccyclical financial loop\u201d: the firm raises capital through shares or bonds, purchases Bitcoin, announces these purchases to drive up stock prices, and then raises more funds.\u00a0<\/p>\n
The analyst asserts that this cycle has worked as long as Bitcoin’s price continues to rise. However, with plans for a new $1 billion share sale, OxChain believes that Strategy is increasing its risk exposure.\u00a0<\/p>\n
Analyst Predicts Major Liquidation Risk<\/h2>\n
OxChain warns that Strategy’s average cost per Bitcoin is approximately $70,000, creating a precarious situation. The analyst adds that if Bitcoin\u2019s price falls significantly below this level, the company’s treasury, currently valued at around $25 billion, could quickly start to suffer losses.\u00a0<\/p>\n
According to the analyst, despite Saylor’s public commitment to never sell Bitcoin, the realities of accounting and risk management may force the company to act if market conditions deteriorate.<\/p>\n
In the first quarter of 2025, Strategy disclosed $5.9 billion in unrealized Bitcoin losses, revealing the volatility of its assets. Under the new accounting standard ASC 350-60, the company is required to report fair value, eliminating the ability to hide behind book value.\u00a0<\/p>\n
This transparency has already led to legal repercussions, with shareholders filing a class action lawsuit alleging that Strategy concealed the risks associated with Bitcoin’s volatility while aggressively raising capital.<\/p>\n
OxChain further claimed during his social media thread that Strategy’s role as a Bitcoin access point is diminishing, especially as institutional capital flows into \u201cmore transparent and regulated options,\u201d such as BlackRock\u2019s iShares Bitcoin Trust (IBIT), which has amassed around $70 billion in assets under management.\u00a0<\/p>\n
The analyst stressed that unlike Strategy, which reportedly faces dilution risks and operates with limited safeguards, IBIT offers a \u201cmore stable investment\u201d for those seeking exposure to Bitcoin.<\/p>\n
If Strategy were to falter, the implications would be far-reaching, OxChain added. The firm holds approximately 2.77% of Bitcoin\u2019s total supply, and a significant liquidation could send shockwaves through the market.<\/p>\n
The analyst warns that a decline in Bitcoin’s price by just 22% from its average buy price could trigger corporate liquidations, potentially leading to one of the largest liquidation events in history.<\/p>\n
Ultimately, OxChain cautions that Strategy is neither a hero nor a villain in the crypto ecosystem; instead, he said that it represents a \u201crisk vector heavily reliant on leverage and market sentiment.\u201d\u00a0<\/p>\n
<\/p>\n
Featured image from DALL-E, chart from TradingView.com\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"
In a bold and alarming statement, on-chain analyst OxChain raised the possibility of a catastrophic collapse involving Strategy (formerly MicroStrategy), the Bitcoin proxy firm co-founded by Michael Saylor. According to OxChain, this potential downfall could surpass the infamous collapse of FTX. \u2018Strategy’s Bitcoin Tactics Resemble Ponzi Scheme\u2019 In a recent post on X (formerly Twitter),…<\/p>\n","protected":false},"author":1,"featured_media":5450,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[28],"tags":[56,55,69,61,120,70,62,36,43,365,366,947,867,868,1850],"class_list":["post-5449","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bitcoin-news","tag-bitcoin","tag-bitcoin-news","tag-bitcoin-price","tag-btc","tag-btc-news","tag-btcusd","tag-btcusdt","tag-crypto","tag-crypto-news","tag-michael-saylor","tag-microstrategy","tag-microstrategy-bitcoin","tag-microstrategy-bitcoin-holdings","tag-microstrategy-news","tag-strategy"],"_links":{"self":[{"href":"https:\/\/coinsvalue.net\/blog\/wp-json\/wp\/v2\/posts\/5449","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinsvalue.net\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinsvalue.net\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinsvalue.net\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/coinsvalue.net\/blog\/wp-json\/wp\/v2\/comments?post=5449"}],"version-history":[{"count":0,"href":"https:\/\/coinsvalue.net\/blog\/wp-json\/wp\/v2\/posts\/5449\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinsvalue.net\/blog\/wp-json\/wp\/v2\/media\/5450"}],"wp:attachment":[{"href":"https:\/\/coinsvalue.net\/blog\/wp-json\/wp\/v2\/media?parent=5449"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinsvalue.net\/blog\/wp-json\/wp\/v2\/categories?post=5449"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinsvalue.net\/blog\/wp-json\/wp\/v2\/tags?post=5449"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}