Analyst Warns: Strategy On Track For Historic Collapse, Bigger Than FTX
On-chain analyst OxChain warns of a potential catastrophic collapse of Strategy, the Bitcoin proxy firm co-founded by Michael Saylor, suggesting it could exceed the FTX collapse. OxChain criticizes Strategy's aggressive Bitcoin accumulation tactics, likening them to a Ponzi scheme. Since 2020, Strategy has shifted from software to a major Bitcoin player, holding approximately 582,000 BTC valued at nearly $61 billion, primarily through leverage and debt. The firm’s cyclical financial strategy involves raising capital to buy Bitcoin, which boosts stock prices, but risks increase with a planned $1 billion share sale. Strategy's average Bitcoin cost is around $70,000; a significant price drop could lead to substantial losses. The firm reported $5.9 billion in unrealized losses in Q1 2025 and faces legal challenges for allegedly concealing risks. As institutional investors favor more regulated options like BlackRock’s iShares Bitcoin Trust, Strategy's market influence wanes. A 22% decline in Bitcoin's price could trigger massive liquidations, impacting the broader market significantly.
