- Strategy CEO Michael Celor The company’s acceptable shareholders will suffer if the bitcoin price decreases for several years. The world’s largest institution in Bitcoin has approximately $ 59 billion in cryptocurrency, and continues to invest so that the company can buy more. While the company has a relatively lack of cash in encryption possessions, questions arise regarding its ability to serve debt.
The CEO of strategy and preaching matches, Michael Sailor, revealed whether Bitcoin will decrease by 90 % and stay at the bottom for about half a decade, the company will be stable, but stock holders will be eliminated because the strategy is very beneficial through transferred debt offers.
The Business Programs Company-known as Microstrategy-is the largest Bitcoiner in the world. By converting stock sales and the release of convertible bonds into an encrypted currency, the company now owns approximately 568,840 BTC 59 billion dollars.
The Sailor Investment Strategy consists of placing all its chips on encryption.
“We believe that bitcoin is the highest forms of property, and Apix property in the world, which is the best investment asset,” said Silor. Yahoo. “So the end of the game is to get more bitcoin. Whatever it gets the biggest Bitcoin victory. There is no other end game.”
Instead of focusing on the organic growth of its previous business program Bank of America The head of the capital market, Craig Copen, said Financial times The company focuses on “new recruits” and “new money”.
In an attempt to collect capital to buy more bitcoin, the company I launched a new favorite stock offer In January, which pays profits and includes a preference for liquidation at $ 100 per share, which means that investors will be paid to liquidate the company at all. The investment car raised 580 million dollars, according to L. foot.
In addition, in March, the company launched another offer, preferring permanent strife, again, to raise funds to buy Bitcoin. This offer “will be paid only”, according to Release.
While the strategy explores every way to invest more money in Bitcoin, Coben said that the moves “raise questions about the sustainability of what they do”, especially if it is Bitcoin digging.
As of March 31, the strategy occupied $ 60.3 million in cash, only a small part of 43.5 billion dollars that she kept in Bitcoin, according to its model. 10-e.. If the company is “forced to sell” Bitcoin “with a great loss” in order to meet the requirements of working capital, then the practice of Sailor He is strongly opposed“Our business and financial conditions can be affected negatively.”
In February, after Bitcoin decreased by 13 % a week, Sailor to publish On X: “Selling the kidney if you have to do so, but keep bitcoin.”
Silor still insists on the company’s security even if there is an encrypted slowdown.
Silor told foot.
However, while the company will be stable, Sailor said that the shareholders are more likely to lose great losses if the coin falls.
“It will not be a good result of the shareholders, right,” said Silor. “People at the top of the capital structure will suffer because they enjoy luxury, but everyone in the capital structure will get their salaries.”
Although the strategy has taken significant debts to finance Bitcoin purchases, the decrease in the encryption price “certainly leads to a greater decrease” in the price of the strategy, previously Citigroup The Managing Director, Dave and Yusperger luck.
Despite the last bitcoin chip, the cryptocurrency increased by almost 20 % this month and more than 65 % since this time a year ago.
“As long as Microstrategy can continue to obtain in addition to the net value of assets, the strategy will continue to reap the benefits of shareholders,” said Copen.
Strategy and Silor no longer wealth Request to comment.
This story was originally shown on Fortune.com
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