CoinShares: MicroStrategy's $42 billion BTC acquisition strategy comes with certain risks

Golden Finance reported that CoinShares stated in a research blog that MicroStrategy’s ambitious plan to purchase $42 billion worth of BTC (BTC) is not without risks. CoinShares states that the success of MicroStrategy’s BTC acquisition plan depends on multiple factors. Analysts believe that the software company needs to “maintain favorable financing conditions and address the demand for its convertible notes.” The cost of debt repayment is also rising. CoinShares points out that in 2021, MicroStrategy was able to raise debt with zero-interest convertible bonds, but since the issuance of new bonds, these face Intrerest Rates have been rising. CoinShares states that the “BTC business of the company may have surpassed its software business,” and adds that cash flow from traditional business may not be sufficient to cover future interest payments.