The Defiance Daily Target 1.75X Long MSTR ETF (MSTX), which tracks MicroStrategy Inc (NASDAQ:MSTR) shares, experienced a significant decline of 5.24% on Wednesday. This plummet can be attributed to growing concerns over MicroStrategy's heavy reliance on Bitcoin and its ambitious capital raising plans, which have raised eyebrows among investors.

MicroStrategy, known for its aggressive Bitcoin acquisition strategy, currently holds a staggering 252,220 Bitcoins valued at $18 billion as part of its "Bitcoin Treasury" strategy. While the company successfully raised $1.1 billion through an equity offering and $1.01 billion through convertible notes to fund further Bitcoin acquisitions, concerns have been raised about the potential dilution of existing shareholders due to the ambitious $42 billion capital raising plan over the next three years.

Furthermore, MicroStrategy's excessive exposure to Bitcoin exposes the company to significant market risk and volatility, which could potentially impact its financial stability. Compounding these concerns is the recent decline in the company's software business revenue and its ongoing transition from on-premise to cloud-based solutions, raising questions about the performance of its core business.