$MSTR 1.4 billion cash reserves, a lifeline or a desperate struggle?
On the surface, it seems that the market value is lower than the Bitcoin holdings, but in reality, it is burdened with debts, with a net loss exceeding 1.1 billion in 2025 and enormous convertible bond pressure. With 1.44 billion in cash facing tens of billions in debt and preferred stock dividends, it can't last more than 7 months. Even more dangerously, the new MSCI regulations will take effect in January 2026, and companies holding over 50% of crypto assets will be kicked out of the index, with Strategy's Bitcoin proportion exceeding 90%. An institutional sell-off has become a foregone conclusion.
650,000 Bitcoins may seem like wealth rivaling nations, but they are actually a “chip bomb.” Once price volatility occurs or the funding chain breaks, selling coins to repay debts is just a matter of time. History has proven: Being forced to sell during a crash will trigger a stock price collapse. The so-called “cash reserves” are merely filling old holes with new retail investors' money, delaying liquidation. When a company no longer talks about business growth and only highlights cash reserves, that is a doomsday signal. The DAT model is dead; don’t be a bag holder.
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