Henrik Zeberg Predicts Potential Collapse for MicroStrategy Due to Bitcoin Exposure
Renowned economist Henrik Zeberg has issued a warning regarding MicroStrategy, traded as Strategy (NASDAQ: MSTR), suggesting that the company’s heavy reliance on Bitcoin (BTC) could lead to significant financial instability.
Zeberg’s Analysis: A Major Shorting Opportunity Looms
In a social media post dated July 18, Zeberg indicated that MicroStrategy could soon present one of the most lucrative shorting opportunities ever seen. He emphasized that this moment has not yet arrived, but it is on the horizon.
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“#MSTR will be the greatest shorting opportunity of a lifetime! Not yet! But it is coming,” — Henrik Zeberg (@HenrikZeberg) July 18, 2025
Bitcoin’s Impact on MicroStrategy’s Financial Health
Zeberg argued that MicroStrategy’s substantial Bitcoin holdings might eventually jeopardize its balance sheet. He explained that each addition of Bitcoin to the company’s reserves is akin to planting a “small bomb” within its financial statements, poised to detonate when Bitcoin’s value drops again.
The economist highlighted that the critical question is not if Bitcoin will decrease in value but when it will happen. Such a downturn could severely affect MicroStrategy’s market capitalization, disrupt its cash flow, limit its credit availability, and erode investor confidence.
“Every time a company adds Bitcoin to its treasury, it plants a small bomb in its balance sheet. Not if BTC tumbles again — but when — those bombs go off. And when they do, they don’t just dent the market cap. They hit cash flow, credit lines, and confidence,” Zeberg elaborated.
Michael Saylor’s Vision: More Bitcoin, More Growth
MicroStrategy’s strategy to embrace Bitcoin has been strongly influenced by its executive chairman, Michael Saylor. He remains steadfast in his belief that “the only thing better than Bitcoin is more Bitcoin.” This strategy has yielded significant returns, with the stock soaring by approximately 3,500% over the last five years, outpacing Bitcoin’s 905% growth in the same period.
MSTR Short Interest on the Rise
Despite MicroStrategy’s impressive performance compared to Bitcoin and traditional market indices, short sellers are increasingly interested. Recent data from Fintel, accessed by Finbold on July 19, indicates a marked increase in short interest for MSTR.
On July 18, 2025, the short volume reached 3.76 million shares out of a total trading volume of 6.74 million, resulting in a short volume ratio of 55.7%—the highest observed in the past ten trading days. This persistent high short interest, often exceeding 47%, reflects growing bearish sentiment towards the stock.
Current Stock Performance and Bitcoin Holdings
In the short term, MicroStrategy’s stock performance has shown some vulnerability, closing the last trading session over 6% lower at $423.22. Nevertheless, the stock has seen a year-to-date increase of over 40%.
Despite concerns about the company’s Bitcoin strategy, MicroStrategy continues to bolster its Bitcoin reserves. The company currently holds 601,550 BTC at an average acquisition price of $66,384.
In conclusion, while MicroStrategy has demonstrated remarkable growth under its current strategy, the reliance on Bitcoin introduces significant risks, as highlighted by economist Henrik Zeberg. Investors and market watchers should closely monitor how these dynamics unfold in the coming months.
Featured image via Shutterstock.
