Analyst: MicroStrategy's Bitcoin strategy is a giant Ponzi scheme

Odaily Planet Daily reported that analyst Jacob King referred to MicroStrategy's Bitcoin centric business model as a "massive scam," stating that it is unsustainable and doomed to collapse. King stated that MicroStrategy's strategy of issuing bonds to purchase Bitcoin is a 'giant Ponzi scheme'. It explains that the company's model relies on feedback loops: issuing debt or equity to purchase Bitcoin will push up the price of the currency, thereby increasing MicroStrategy's market value. A higher valuation allows the company to raise more funds to further purchase Bitcoin. King warns that the entire cycle depends on the sustained rise in Bitcoin prices. King added, "When Bitcoin stagnates or collapses, the entire structure will collapse