I disagree. I don’t have exact numbers for you, but from what I have learned so far they are very safe and won’t have to sell any bitcoin. They have been very strategic on when and what instruments to implement. Maturity dates for contracts are staggered and evn in worst case scenario they would have to only sell small amounts of bitcoin. I doubt they will, because they always sell stocks and raise more money.
The only negative th at may happen is MSTR stock prices will drop significantly if bitcoin experiences a bear market. Even if that happened, over time things would return to positive, just because that’s what bitcoin does.
I don’t think overleveraged applies here. There is no margin call.
MSTR investors are bitcoin investors, they understand the risks and are ok with it. I saw BlackRock now owns 5% of MSTR. Vanguard owns 7%, Morgan Stabley 4.5%, etc. I would assume they have doen their homework.
That said what Strategy does actually has the opposite effect of FTX. Strategy is a permanent top buyer, and investors keep giving them money to do so.
MicroStrategy is funding those buys with convertible debt so the ones buying those bond they can choose if they will get paid in stocks or cash when the bonds are mature so if the stock of MicroStrategy is low they will demand to get paid in cash MicroStrategy Revenue is 500 million annually and their debt 2 months ago when i made the research was 4.7 Billion dollars.
Debt to Equity Ratio was 111.6%
Market Cap to Revenue 210X
So MSTR basically an overleveraged bitcoin ETF because they bought their BTC with debt .
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