Strategy Company Warns: Take Bitcoin's Heavy Risks Seriously

Strategy, the largest corporate holder of Bitcoin, has issued a warning in its new guide regarding the heavy risks of BTC, referencing a 93.1% drop of this cryptocurrency in the past. This document, published by Michael Saylor, CEO of Strategy, focuses on risk management, position sizing, and the dangers of leverage. The deepest historical drop of Bitcoin was recorded in 2011 at 93.1%, and the worst one-year return of BTC was negative 83.6%. Strategy emphasizes that even long-term investors may suffer heavy losses due to high leverage, forced liquidation, and costs. As of September 7, Strategy held 845,050 BTC at an average purchase price of $75,412. With the current price of Bitcoin around $77,000, the market value of this company's assets is close to the average purchase cost. Additionally, on August 31, Strategy purchased another 4,603 Bitcoins at an average price of $80,318, which are currently in the loss range at current prices. This guide highlights the contradiction between an aggressive Bitcoin buying strategy and warnings about severe crashes, stressing that belief in the long-term future of BTC should not blind investors to the possibility of significant declines and the necessity of capital management.