In response to growing concern about it $BTC leverage strategy, MicroStrategy (now Strategy) responded quickly by building a $1.44 billion wall of cas in just 8.5 day.
š¹ This reserve is specifically designed to ensure the ability to pay dividend and debt obligation for at least the next 12 to 24 month.
Quell any rumor (FUD) about liquidity without selling any $BTC in the treasury.
Assert that selling $BTC is a last resort, only considered when the stock price falls below net asset value and other financial resource are exhausted.
šø This defensive move come at a sensitive time as MicroStrategy face the risk of being removed from the MSCI index on January 15.
It is estimated that the removal could trigger a forced sell off of $2.8 billion from simulated fund, with a total outflow of up to $8.8 billion.
This would collapse the Premium that MSTR shares are enjoying, cutting off the mechanism for raising cheap capital to buy Bitcoin.
š¹ The rapid capital raising even when BTC price is down (to ~$89,956) and MSTR share are down 7% show that investor confidence is still very strong. This is not a sign of weakness, but a carefully calculated move to silence the Bear.
MicroStrategy is preparing for the worst case scenario to protect it BTC treasure.
In your opinion, is holding MSTR share safer than holding Bitcoin directly Spot BTC in this legal risk context?
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