Analysts now debate can MicroStrategy push Bitcoin to $0 after a sharp selloff. One strategist says Bitcoin fails as money due to energy use and slow adoption, and that MicroStrategy’s sway scares big buyers. This guide breaks down the bear case, the bull case, and how investors can manage risk today. Bitcoin has dropped more than half from recent highs. That fall has restarted a fierce debate about its future. Richard Farr, chief market strategist at Pivotus Partners, set a price target of zero for Bitcoin. He argues that Bitcoin struggles as a medium of exchange because it uses a lot of energy. He also says big institutions are still not ready to own it at scale. He adds that many central bankers will not back an asset if one public company seems to control a large share of supply. In his view, MicroStrategy and its leader, Michael Saylor, sit at the center of that problem. This claim raises a sharp question for investors: can MicroStrategy push Bitcoin to $0? To judge that, we must look at the company’s strategy, its balance sheet, and how its moves might affect price, both directly and through market psychology.

Can MicroStrategy push Bitcoin to $0?

The short answer is that one company is very unlikely to take a global, decentralized asset to zero. Bitcoin trades around the world, 24/7, across thousands of venues, with millions of holders. No single buyer or seller controls that market. But MicroStrategy can still move the story and the short-term flow. It can raise or lower risk in key ways.

How one company can still sway price

MicroStrategy has turned itself into a Bitcoin proxy. It issues stock and convertible notes. It uses the proceeds to buy more coins. When Bitcoin rises, the company books paper gains. When Bitcoin falls, it shows paper losses. Its software business is small next to its Bitcoin stack. That setup creates channels that can impact price and sentiment:

Supply and demand: Large buys can lift price short term. Large sells can push price down short term.

Leverage and stress: Debt and convertibles add pressure when prices drop, which can lead to more equity sales or potential asset sales.

Narrative control: A loud, high-profile buyer can shape headlines and investor mood, for good or bad.

Institutional optics: Some institutions may avoid Bitcoin if they believe a single corporate treasury dominates the float.

These forces do not set Bitcoin’s fair value by themselves. But they can change the path to that value. They can add volatility. They can also deepen drawdowns in weak markets.

The bear case: concentration, energy, and adoption

Richard Farr lays out a bleak view. He says Bitcoin fails as a medium of exchange, in part because it uses a lot of energy. He also sees slow institutional adoption. He believes serious central banks will not hold an asset if they think Michael Saylor controls too much of it. That view ties into the question “can MicroStrategy push Bitcoin to $0” because it treats MicroStrategy’s role as a barrier to broad acceptance. Michael Burry has also warned about MicroStrategy’s risk. He points to downside spillovers if Bitcoin falls further. The stock has been hit far more than the coin in this slump. That gap highlights the extra risk that leverage and equity market dynamics add on top of Bitcoin’s moves.

Balance sheet reality and earnings optics

Here are key points, as reported around the latest quarter:

Debt sits near $8.2 billion, with cash of about $2.3 billion.

The company has used at-the-market stock offerings and convertible notes to fund Bitcoin buys.

Earnings swing with Bitcoin’s price due to mark-to-market accounting. A down quarter shows big paper losses, even when cash does not change.

Last quarter, EPS fell about 193% on this accounting effect.

As of Feb. 1, reported holdings were 713,502 Bitcoins at an average cost near $76,000 per coin, which placed the position underwater during the slide.

These facts support the bear view that MicroStrategy acts like a leveraged Bitcoin vehicle. If Bitcoin drops another 10% to 20%, the equity can fall much more. That setup can force more equity issuance or higher-cost financing. It can also make future buying less impactful, since each new dollar buys fewer coins.

The bull case: long-term conviction and access

Not all analysts agree with the zero view. H.C. Wainwright recently raised its price target on MicroStrategy shares. A large group of Wall Street analysts still rate the stock a Strong Buy. Bulls argue that Bitcoin’s supply is fixed and that adoption grows over time, often in cycles. They say MicroStrategy gives equity investors a simple way to get exposure. They also argue that leverage cuts both ways: in uptrends, the stock can outrun Bitcoin by a wide margin.

What could happen across price paths

Different Bitcoin paths point to different MicroStrategy outcomes:

Bitcoin drops another 10% to 30%: The company likely books more paper losses. Its debt and convertibles weigh more. It may sell more stock to add liquidity. The equity likely falls more than Bitcoin due to leverage and dilution risk.

Bitcoin trades flat for months: Financing costs and operating expenses matter more. The market may lower the premium it pays for the equity proxy. The stock could lag or chop while waiting for a new trend.

Bitcoin recovers strongly: Mark-to-market turns into large paper gains. Access to fresh capital improves. The equity can rally faster than Bitcoin as leverage works in its favor and sentiment turns.

Notice that none of these paths suggest that one company alone can send Bitcoin to zero. But they do show how MicroStrategy can speed up moves, especially on the downside during stress.

Risk signals investors should watch

Investors who ask can MicroStrategy push Bitcoin to $0 really want to know how to handle risk. You can track signals that matter most:

Funding choices and dilution

Watch at-the-market offerings. Frequent equity sales can cap rallies and dilute holders.

Read new convertible note terms. Coupons, conversion prices, and covenants can raise or reduce future stress.

Bitcoin basis and treasury policy

Track the average cost per coin. A wider gap to market price raises pressure.

Note any pledge of coins as collateral. That can create margin risks in deep drawdowns.

Cash flow and operating cushion

Separate accounting gains from cash. Paper profits do not pay interest or salaries.

Check the software business contribution. Even a small, steady cash engine helps during weak markets.

Market structure and adoption

Follow institutional flows into spot Bitcoin ETFs and custodians. Broadening access can offset concentration fears.

Monitor energy debates and policy. Clearer rules can help or hurt adoption narratives.

So, can MicroStrategy push Bitcoin to $0? A clear answer for investors

The evidence says no. Bitcoin is too broad, too liquid, and too decentralized for one company to drive it to zero. But MicroStrategy can amplify price swings. It can deepen selloffs if it must raise capital in a weak market. It can also intensify rallies when conditions improve. For stock investors, the company functions like a high-beta, leveraged proxy on Bitcoin with added equity and financing risk. For Bitcoin holders, the company is a noisy player in the market, not the market itself. If you hold or plan to buy the stock, size your position for heavy volatility. If you hold Bitcoin, expect louder headlines when MicroStrategy makes moves, but judge your thesis on network health, adoption, and policy trends. In other words, answer the question can MicroStrategy push Bitcoin to $0 with calm logic: highly unlikely, yet still important for timing, risk, and expectations.

(Source: https://www.barchart.com/story/news/113796/the-shocking-reason-this-analyst-says-michael-saylor-and-microstrategy-stock-will-take-bitcoin-prices-to-0)

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