Microstrategy (MSTR) has disclosed a new risk, in the Accounting & Financial Operations category.
Microstrategy’s substantial investment in Bitcoin exposes it to the unique risks of dealing with a novel asset class that is subject to significant legal, commercial, regulatory, and technical uncertainties. The evolving regulatory landscape, exemplified by various international legislative and enforcement actions, could adversely affect Bitcoin’s price and liquidity. This, in turn, poses a risk to the value of Microstrategy’s assets. Furthermore, technical challenges inherent to the Bitcoin blockchain and potential shifts in institutional and consumer sentiment towards digital assets could further impact the company’s financial position.
The average MSTR stock price target is $695.67, implying -0.56% downside potential.
To learn more about Microstrategy’s risk factors, click here.
