MicroStrategy Upsizes Debt Offering to $525M for Additional Bitcoin Purchase Amid JP Morgan's Warning

By: Eliza Bennet

MicroStrategy, led by Michael Saylor, recently announced an upsized $525 million debt offering plan to buy more Bitcoin. This move comes shortly after the firm acquired 12,000 BTC with the proceeds from a $700 million offering. However, financial giant JP Morgan has sounded a word of caution.

JP Morgan believes that injecting more leverage into Bitcoin markets could make a potential correction significantly more volatile. The move by MicroStrategy to further leverage its Bitcoin buys, according to JP Morgan, could lead to 'severe deleveraging' if the market faces a drop.