MicroStrategy has for the first time acknowledged that it may be forced to sell BTC in an emergency
• CEO Phong Le stated that the company will only sell BTC if:
1. The market value of MSTR < the value of the BTC held (mNAV < 1x)
2. It cannot raise funds through issuing shares or borrowing.
• MicroStrategy currently has to pay 750–800 million USD in preferred dividends each year. Previously, they used share issuance to cover this, but the sharp drop in stock prices has made this more difficult.
• This goes against Saylor's philosophy of "never selling" and shows that previous doubts were well-founded.
• The likelihood of selling BTC is very low, but if it happens, the market is certainly in panic, and the amount of BTC sold will make the situation worse.
