Jiang Zhuoer: MicroStrategy suggests it will continue selling coins to pay interest in the future, but the company does not face the risk of leveraged liquidation.
BlockBeats reported on June 18 that Jiang Zhuoer, founder of B.TOP mining pool, commented on the news that MicroStrategy's BTC reserves can pay 32 years of dividends. He stated that MSTR (MicroStrategy) holds $55 billion worth of BTC and only needs to pay $1.7 billion in STRC dividends annually. By selling BTC, it can cover 32 years of dividends.
It should be noted that STRC is a preferred stock, not a bond, so there is no need to repay the principal. Therefore, MSTR does not run the risk of being liquidated due to leverage or being unable to pay dividends. However, STRC has already deviated significantly from its anchor and can no longer be refinanced. Although MSTR has bought BTC in the past two weeks, this was achieved by issuing new common shares, which cannot be done every time.
This is telling the market not to be surprised if the company sells BTC to pay dividends in the future. Although the selling volume is not large compared to the entire BTC market, it will still deal a blow to market confidence because MSTR will be substantially selling coins. Not everyone knows that STRC is a stock and not a bond, or that MSTR does not face the risk of forced liquidation due to leverage, so many people may still worry that "MSTR, the big risk, might explode at the bottom of the bear market."
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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