Michael decided to take on even more debt, increasing the existing 8 billion dead presidents. He believes in HODL and eternal growth and currently has an unrealized profit of about 6 billion, but he has a dead mouse hanging on his account. If Bitcoin falls, then his financial genius will very quickly become an avalanche of sales
How their scheme works:
1. Issue shares and bonds
📈 Sell new MSTR shares → get cash.
💵 Issue bonds (debt securities) → investors give them money at interest.
2. With this money they buy Bitcoin
🟧 Everything that was attracted - they go and buy BTC.
They do not sell. They just hold. Never fix the profit.
3. If BTC grows → the price of MSTR shares grows
MSTR shares become like an "ETF on Bitcoin".
📊 BTC growth = MicroStrategy capitalization growth.
🔁 They repeat again
The stock price has grown → they issue more stocks/bonds → they buy more BTC → and so on in a circle.
📌 What's the trick:
They use other people's money (debt) to buy BTC.
They themselves sell almost nothing.
They bet: BTC will grow faster than the interest on the debt.
I am very worried about this situation. Perhaps I am voicing an unpopular opinion, I am sure that Bitcoin will survive this too if there is a forced liquidation of the Strategy's assets. But we traders must see deeper