Microstrategi could be compelled to reject Bitcoin under these circumstances, Michael Sailor reacts – Tradingview News

MicroStraTGI, the largest corporate carrier Bitcoin, has long mitigated the most common institutional bets on cryptocurrency. The co-founder and chairman of the unwavering belief of Michael Saylor in Bitcoin has defined the company’s strategy for years. However, this strategy is now facing a challenge after a recent view of a settlement to the possibility of microstrategia to liquidate some of its Bitcoin funds under financial pressure and recent Bitcoin collision. The implications could be propagated outside the company’s balance sheet and influence the wider Market Bitcoin.

Mounting Debt, Negative Cash Flow and Bitcoin Lifeline

The microstrategi revealed several important financial vulnerabilities in the recent form of 8-K submitted by Sec. At the time of submission, the company reported to have 528,185 BTC, gained in an average purchase price of $ 67,458 per bitcoin, in the total cost of about 35.63 billion dollars. However, despite the massive size of its Bitcoin Treasury, Microstrategi acknowledged that its basic company operating company does not generate a positive operating cash flow. The company also shouldered 8.22 billion dollars in debt and coping with an annual $ 35.1 million.

Although it issued over 1.6 billion dollars of desirable stocks related to significant annual dividivity obligations in the amount of 146.2 million dollars, these obligations are not fulfilled. Instead, the microstrate explicitly pointed out that he expects to relies on debt or capital to fulfill his obligations, and these efforts can become seriously noted if Bitcoin’s price reduced the price. The report warns that if the market value of its farms decreases significantly, it could negatively affect the company’s ability to collect funds. In such a situation, the company may be forced to sell Bitcoin at a loss.

At that time, the report was submitted, BTC traded only 13% above the average company’s purchase price. Since Bitcoin forms most microstrates of assets, his balance is approximately related to the CRIPT. As such, the fall below that level could create a chain reaction of the prices of falls and eventually force pressure even at the price of Bitcoin itself.

Michael Saylora’s answer: stay a course

Michael Sailor, Microstratgi’s co-founder and former general manager, is one of the greatest advocates of Bitcoin and was influential in the adoption of Bitcoin Strategy. Downloading on social media platforms KS After erupted the reports from the report, Sailor was simply tweetied: “Hodl”, a popular mantra among cryptoms that signal the long-term belief.

The post office had over 1.4 million opinions on the platform and resonated with many legal advocations, as seen in the comments section. He followed it with another Tweet: “Bitcoin is the best idea. There is no other best.”

At the time of writing, BTC trades $ 81,900, for 6% in the last 24 hours. Even if Micro-Search sold any bitcoin at this point, it would not be the first sale of his farms. Return 22. December 2022. year, Microstrate sold 704 BTC for $ 11.8 million under similar circumstances.