Prominent economist Henrik Zeberg has sounded alarms over Strategy’s (formerly MicroStrategy) substantial Bitcoin investments, cautioning that its high-exposure strategy could trigger severe financial instability despite delivering massive historical returns. The corporate Bitcoin pioneer has seen its stock rocket 3,500% over five years—dwarfing Bitcoin’s own 905% appreciation—through relentless cryptocurrency accumulation.
Zeberg contends that this success masks inherent vulnerabilities: A significant Bitcoin price collapse could rapidly erode Strategy’s liquidity, destabilize financial health, and undermine investor confidence due to the company’s heavy dependence on cryptocurrency market trends. Current stock valuations remain tightly correlated with Bitcoin price movements, leaving Strategy exposed to market shocks.
Investor sentiment appears conflicted—balanced between enthusiasm for past outperformance and concern over Bitcoin’s volatility and regulatory uncertainties. Zeberg characterized the approach as analogous to ‘planting hidden risks,’ warning that widespread market repercussions could extend beyond Strategy itself should Bitcoin face a major downturn.