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Tag: centralized risk

MicroStrategy’s FTX-Scale Risk: Will it Collapse in 2026?

Introduction

MicroStrategy, a company known for its aggressive Bitcoin investment strategy, is facing a potential collapse in 2026. With a debt load of over $8.2 billion and a significant portion of its assets tied to Bitcoin, the company’s financial stability is under scrutiny. In this article, we will analyze the risks facing MicroStrategy and explore the potential consequences of its collapse.

The Risks Facing MicroStrategy

According to a report by BeInCrypto, if Bitcoin falls below $50,000 and stays there, MicroStrategy’s market cap could fall below its debt load, making it difficult for the company to raise capital. Additionally, a large crash in the Bitcoin price, especially if paired with a liquidity crunch or ETF-driven volatility, could push the company into distress. As BeInCrypto notes, the odds of a total collapse in 2026 are low, but not remote, with a rough estimate of 10-20% based on current balance sheet risk, market behavior, and Bitcoin volatility.

Index Exclusion Risk

MicroStrategy is also facing the risk of exclusion from major indices such as the MSCI USA Index. As AINvest reports, JPMorgan has warned that the company may be excluded from these indices due to its Bitcoin holdings exceeding the proposed 50% threshold for eligibility. Such an exclusion could trigger up to $8.8 billion in forced institutional selling, as index-tracking funds automatically rebalance their portfolios.

Conclusion

In conclusion, MicroStrategy is facing significant risks in 2026, including a potential collapse due to its high debt load and significant Bitcoin exposure. While the company’s aggressive investment strategy has been successful in the past, it also poses significant risks to its financial stability. As Capital.com notes, the company’s stock price has fallen 60% from recent highs, eroding the valuation premium that fueled its capital raise-and-buy strategy.

December 27, 2025
Cloudflare Outages: Understanding the Impact

Introduction to Cloudflare Outages

Cloudflare, a key internet infrastructure provider, has experienced outages that affected large parts of the internet. According to reports, the most recent outage occurred on December 5, 2025, due to internal service degradation during scheduled maintenance at the Detroit data center.

Causes and Effects of Outages

The causes of these outages vary, but they often result from internal configuration issues or technical failures. For instance, the November 18, 2025, outage was caused by a misconfigured database permission that allowed a Bot Management feature file to grow uncontrollably large, overwhelming Cloudflare’s routing and proxy systems. This incident affected core services like DNS, CDN delivery, and web access for thousands of businesses worldwide, as explained in Cloudflare’s blog post on the incident.

Impact on Businesses and Users

These outages have significant implications for businesses and users. As noted by Forbes, the outages affect not only Cloudflare’s customers but also the broader internet ecosystem, highlighting the centralized risk associated with relying on a few large providers. The history of Cloudflare outages shows that such incidents can have far-reaching consequences, disrupting services for hours and impacting businesses worldwide.

Lessons Learned and Future Preparations

As analyzed by DataYard, these outages underscore the importance of resilient architecture, vendor diversification, and proactive visibility into dependencies. Businesses can learn from these incidents by implementing strategies to mitigate the impact of outages, such as having backup plans and diversifying their infrastructure to reduce dependence on single providers.

December 5, 2025