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https://archive.is/eS2Q3 https://archive.is/eS2Q3 > [Burry] warned that if prices fall another 10%, Strategy (MSTR) would be billions in the red and could “fin
by kristianp 9mo ago
https://archive.is/eS2Q3 https://archive.is/eS2Q3
> [Burry] warned that if prices fall another 10%, Strategy (MSTR) would be billions in the red and could “find capital markets essentially closed".
According to bloomberg [1] mstr is still trading at a 9% premium to the btc it owns. Why would bitcoin falling another 10% make a difference?
[1] https://archive.is/jQPYk https://archive.is/jQPYk
- donavanm 9mo agoI suspect the issue is they still need cash for 1. dividends 2. Further dilution, er acquisition. They have some put away for the near term dividends. But you can see the negative feedback loop if they cant make those payments/acquisitions. Having a huge hole in the books wont help for raising cash through lending, or asset sales realizing the loss. Re: 10% specifically, i havent checked but Im guessing thats a floor on their cost basis for a bunch of holdings going negative.
- kristianp 9mo agoYes their pattern is to issue bonds/equity to buy more btc and fund debt repayments. If people are no longer buying it causes problems. Not an unexpected outcome at all!
- latchkey 9mo ago"As of early 2026, Strategy (formerly MicroStrategy) holds approximately $2.3 billion in cash and cash equivalents, including a $2.25 billion USD reserve specifically for covering preferred stock dividends." Everything is documented on their website... https://www.strategy.com/ https://www.strategy.com/
- kristianp 9mo agoIf you subtract those 2 numbers you're left with $50 million. Does that mean they only have enough cash to pay 6 months of dividends? They still need to come up with more cash to maintain the dividends after that.