According to PANews, financial expert David Krause has warned that a significant decline in Bitcoin prices could severely impact MicroStrategy, potentially jeopardizing its ability to repay debts and leading to financial distress or bankruptcy, which may trigger a sell-off of its stocks. Financial analyst Jacob King noted that MicroStrategy tends to raise funds through debt or equity to purchase more Bitcoin when its stock price exceeds the net value of its Bitcoin assets. This cyclical strategy is effective only if Bitcoin prices continue to rise; however, if Bitcoin prices stagnate or crash, this cycle could collapse.