JP Morgan warns that MicroStrategy’s Bitcoin purchases might exacerbate any future market downturn.The software program firm has purchased over $2 billion in Bitcoin prior to now six months and bought bonds to fund the purchases.MicroStrategy’s $2 billion in Bitcoin purchases over the previous six months threat exacerbating the hangover of any new downturn, JPMorgan warned in an investor observe on Thursday.MicroStrategy most just lately purchased $821 million value of Bitcoin between February 26 and March 10 on the again of promoting $1.2 billion in senior convertible notes firstly of the yr, as DL Information beforehand reported.“We consider debt-funded Bitcoin purchases by MicroStrategy add leverage and froth to the present crypto rally and lift the chance of extra extreme deleveraging in a possible downturn sooner or later,” JPMorgan analysts wrote, with out increasing on the purpose.Senior convertible notes are a kind of bond that may flip into firm shares. They’re additionally thought of to be debt securities because the issuer agrees to pay curiosity to traders, who will even be paid again earlier than different money owed if an organization fails.Keep forward of the sport with our weekly newslettersThe funding banking large’s feedback come because the crypto business is within the throes of an enormous crypto rally, led by Bitcoin surging to a brand new all-time excessive of $73,500. It at the moment trades at round $66,900.“The sale of convertible notes exhibits that the corporate, by showing to remodel itself to a leveraged guess on Bitcoin, has additionally performed a component in amplifying the rally,” JPMorgan wrote.Headed by Bitcoin bull Michael Saylor, MicroStrategy is on a spending spree to purchase up as a lot Bitcoin as it could. The purchases are a part of the software program intelligence agency’s pivot to changing into a “Bitcoin improvement firm.”Be a part of the neighborhood to get our newest tales and updatesMicroStrategy holds 205,000 in Bitcoin, value $14.7 billion, making it the world’s main personal holder of the cryptocurrency, in accordance with Bitcoin tracker Bitcoin Treasuries.MicroStrategy didn’t instantly return DL Information’ request for remark.Sebastian Sinclair is a markets correspondent for DL Information. Have a tip? Contact Seb at sebastian@dlnews.com.