MicroStrategy, the largest corporate owner of Bitcoins, has long portrayed the bravest institutional institution for cryptocurrency. Unwavering faith of the co -founder and chairman Michael Saylor in Bitcoin defined the company’s strategy Over the years. However, this strategy is currently in the face of the challenge after the last SEC, indicating the possibility of forcing Microstrategy to eliminate some of its bitcoins under financial pressure and Last Bitcoin price failure. Implications can wave beyond the company’s balance and affect the wider Bitcoin market.

Finding a debt, negative cash flows and Bitcoin Lifeline

MicroStrategy revealed several crucial financial gaps In the latest 8-k form Convoluted in SEC. At the time of submitting the application, the company Reported possession 528 185 BTC, purchased at an average purchase price of USD 67 458 for bitcoins, which means a total cost of around 35.63 billion. However, despite the huge size of the Bitcoin treasury, Microstrategy admitted that his basic software activity for enterprises does not generate positive operating cash flows. The company is Also reception USD 8.22 billion in the face of the annual charges of contractual interest in the amount of USD 35.1 million.

Although he broadcast over $ 1.6 billion in preferred actions related to significant annual dividend obligations in the amount of USD 146.2 million, these obligations are not satisfied. Instead, Microstrategy clearly stated that he would expect to rely on financing debt or equity to fulfill his duties, and these efforts may be seriously tense if the price of Bitcoin drops rapidly. The report warns that if the market value of his shares drops significantly, it may negatively affect the company’s ability to raise funds. In this situation, the company may be forced to sell Bitcoins with a loss.

At the time of submitting the BTC report, only 13% of the average purchase price of the company traded. Because Bitcoins are the majority of Microstrategy’s assets, its balance is closely related to the cryptographic price. Therefore, a decrease below this level may cause a chain reaction of falling share prices and ultimately force the pressure to sell even the very bitcoins price.

Michael Saylor’s answer: will remain the course

Michael Saylor, co -founder and former general director of MicroStrategy, is one of the The greatest supporters of Bitcoins And it had an impact on the adoption of Bitcoin strategy. Saylor simply switching to the social media platform x Tweet: “Hodl”, a popular mantra among cryptographic purists, which signals a long -term belief.

The post had over 1.4 million views on the platform and resonated with many stubborn supporters, as can be seen in the comments section. He followed it with another tweet: “Bitcoin is the best idea. There is no second best.”

At the time of writing, BTC trads $ 81,900, by 6% in Last 24 hours. Even if Microstrategy was to sell any bitcoins at the moment, this would not be the first sale of his shares. On December 22, 2022, Microstrategy sold 704 BTC for USD 11.8 million in similar circumstances.

A distinguished picture from Unsplash, tradingview.com chart