Will Strategy Be Forced to Sell BTC? Michael Saylor Responds Urgently!
As a steadfast holder of Bitcoin, Michael Saylor, co-founder and chairman of Strategy, has boldly bet on Bitcoin for many years, leading the company's main strategic direction with this approach.
However, the recent 8-K filing submitted by Strategy to the SEC has triggered a wave of panic in the market.
The disclosure in the filing reveals that Strategy holds a reserve of 528,000 Bitcoins (average purchase price of $67,458), but its core enterprise software business has not generated positive operating cash flow.
In addition, the company carries $8.22 billion in debt and faces an annual contractual interest burden of $35.1 million.
Although the company has taken on a massive annual dividend of $146.2 million and issued over $1.6 billion in preferred stock, these debts and dividends are also an invisible mountain.
The document also mentions that if the price of Bitcoin drops significantly, the company's financing may become difficult, and they may even incur losses and sell some BTC to meet debt obligations.
This risk not only concerns MicroStrategy itself; a large-scale sell-off would break the market expectation of 'institutions only buying and not selling,' potentially triggering a downward spiral in both stock and cryptocurrency prices, and even testing the feasibility of Bitcoin as a corporate reserve asset.
In the face of the crisis, company founder Michael Saylor responded on the X platform with just the word 'HODL' (Hold On for Dear Life), demonstrating his consistent tough stance. This biggest believer in Bitcoin has repeatedly stated that 'he will not sell even a single Satoshi of Bitcoin,' indicating that Saylor remains confident in Bitcoin.
Conclusion:
Strategy is at a critical point of 'stress testing' for corporate Bitcoin holdings, facing the choice of steadfastly adhering to beliefs and continuing to 'HODL,' or compromising with financial realities. This decision not only concerns the company's own fate but may also reshape the institutionalization process of the entire cryptocurrency market.
If Strategy can successfully navigate this crisis, it may establish a benchmark model for publicly traded companies holding BTC; however, if forced to sell, it could shake confidence in the institutionalization of the entire cryptocurrency market.
Do you think that based on Strategy's current holding cost, the company can cope with financial risks? Between financial pressure and belief, what do you think Michael Saylor will ultimately choose?
