Crypto investors worry MicroStrategy owes $1.2 Billion forever
10 posts in the last 90 days, all from r/CryptoCurrency.
“It’s hilarious that since STRC IPO they now have about the same gross BTC per share than they did prior to the IPO. AND they now have 10 Billion in senior claims that cost them 1.2 Billion a year that they didn’t have before. STRC so far has been a complete disaster for common…”
“This is why mass adoption takes so long. We have multibillion-dollar treasuries being managed by people posting AI-generated anime fight scenes instead of behaving like functional adults.”
“You're not making a ton of money. The market is up that much is 8 months... With less volatility You're literally capping your upside with huge downside and the company is literally buying high, selling low, and diluting the shit out of their holders. It's hardly been at par…”
Several users express concern that MicroStrategy's debt load and Bitcoin sales are unsustainable, questioning its future inclusion in major stock indexes like MSCI. They highlight the company’s ongoing need to sell Bitcoin while accumulating debt.
SOURCES (30)
“This is why mass adoption takes so long. We have multibillion-dollar treasuries being managed by people posting AI-generated anime fight scenes instead of behaving like functional adults.”
“Last I checked they still have less BTC per share and still have more net senior obligations than before.”
“You're not making a ton of money. The market is up that much is 8 months... With less volatility You're literally capping your upside with huge downside and the company is literally buying high, selling low, and diluting the shit out of their holders. It's hardly been at par, this is your chance to get out, not gloat...”
“even if the price does -80% those dividents are guaranteed to continue exactly the same abount each month? I am pretty sure the dividents you are getting from MSTE have already fallen drastically? How are you sure the total amount of dividents you will eventually get is equal or more to the money you have used to buy MSTE with? If you ad the divident you have gotten so far + the value of the MSTE shares you hold, isn't this already like 30% lower then the money it cost you to buy MSTE in the”
“Terrible, they only have 840,000 BTC left, 4% of the supply that will ever exist.”
“Oh buddy you are in for a fun conversation with the tax man with that faulty logic. Also, you absolutely can and should look at every individual stock share/coin and every individual purchase price. He could've sold half at a profit and half at a loss and broke even for taxes. He could've sold his first tokens purchased and realized gains. He could've sold his last tokens purchased and realized a loss that could be used to offset some other revenue gains for tax reporting. He could&#”
“Totally agree. I never understood why Microstrategy was trying to boast of a high mNAV premium. High mNAV is NOT good. It's a sign that your stock is completely overvalued. Clearly their investors never learned the history lesson from GBTC. mNAV is a metric for investors exhuberance and insanity--not for success.”
“They sold/diluted MSTR again this time for STRC buybacks and dividends. My big concern is MSTR holders saying enough is enough, and then selling. That's what I'm seeing in the MSTR sub: weeks of people leaving for good.”
“Are you saying that Saylor and the board is lying and the cash reserve isn’t for the preferreds after all? Are you saying that if they start issuing STRC again they won’t be holding back 30% of the cash raised in reserve? Because that’s what they’re projecting to do. Why don’t you do the actual math about the STRC IPO and tell me what you get? You really think it’ll be a big gatcha if the number you come up with isn’t actually 0 but 25% of the original purchase? Why don’t you give me a good expl”
“It’s hilarious that since STRC IPO they now have about the same gross BTC per share than they did prior to the IPO. AND they now have 10 Billion in senior claims that cost them 1.2 Billion a year that they didn’t have before. STRC so far has been a complete disaster for common shareholders. Could future STRC issuance actually be accretive? Sure, but the current STRC they’ve sold is already a net loss and will continue to be a drag going forward. This is what happens when you issue STRC at 90, bu”
“Going to? Strategy is already coming apart at the seams. MSTR has tanked more than 80%. It has $8 Billion in net losses. STRC still hasn't been able to peg back for the last 3 months despite all efforts. Strategy hasn't been able to buy BTC in 2 months. And now Strategy has had to break from its core "strategy" and has had to keep selling BTC to keep itself from spiraling too fast.”
“You are correct, I took a shortcut cause it's kinda impossible to determine what their average sale price from the bitcoin they bought with STRC is, partially because they didn't actually sell bitcoin to fund it untill very recently, and also because the increase in cash reserves, and common stock issuance clouds it, but yes if you change the average sale price you can come up with different numbers. but it doesn't change the fact that, THERE IS A NUMBER WHERE ITS ACCRETIVE, which wa”
“You lost it at the 2nd question. People who invest in strc don’t believe in the superior asset. But they like the dividend yield.”
“They increased the cash reserves to pay for the obligations. As long as they are able to pay their obligations, the company cannot fail. So by selling BTC, the company will be able to meet their obligations for a longer period. The only way they can go bankrupt is if their BTC holdings go below their total obligations, which should happen with a BTC price of 8k for the convertible notes only, and 27k for the total liabilities + preferred stocks. The key debt is the convertible notes, because the”
“Take away the mstr bag holders that continue to fund every “strategy” Saylor offers and they have literally nothing else to do but sell btc.”
“If Bitcoin doesn't appreciate soon, the MSTR and STRC investors are going to go to war.”
How has mstr faired ytd? Also, what is your average price?
“The goal posts keep moving. First it was all about bps, now it’s, “they need to improve bps in the longer term not be up each and every quarter and year”. You don’t see where this is leading?”
MSTR exists to ensure that the holders of the preferreds get to eat.
“Cool story, but I already had this conversation with the person above. Best of luck to you”
“Bitcoin per share has gone down since the launch of STRC and now has a guaranteed drag on it. He leveraged people overpaying for the common stock who are all miserable that they overpaid for it now and won’t again. It’s also a dishonest metric because it ignores the STRC senior claim to the bitcoin.”
“It could have been managed better and it could be an extremely good move as well. The two aren't mutually exclusive. Bitcoin per share has skyrocketed the past few years, the stock has tripled even at today's price and saw an ATH.”
“You’re acting like they have no autonomy and can’t control if STRC for example was managed way better. They are free to make better decisions than they have, but are seemingly incapable. If you think strategy have maximised the shareholder value in their bitcoin treasury model in the last few years then good luck. Whether or not Bitcoin goes up and covers up some of these blunders is besides the point.”