MicroStrategy’s financial report shows unrealized losses on digital assets of up to $14.4 billion. In the first quarter, the company’s earnings per share (EPS) was a loss of $38.25. Because Bitcoin hasn’t been sold, this is only on paper. Now Bitcoin has risen back again and has started moving into a profitable state. MicroStrategy’s overall cost basis is roughly around $76,000. There’s a line from that time that’s worth noting.



The old man said: The company may sell a small amount of Bitcoin to pay for the preferred stock STRC’s annual dividend of up to 11.5%.

If Bitcoin stays below $76,000 long term, and the stock and the company can’t continue to be profitable or the total returns can’t reach 11.5%, then he will sell Bitcoin to pay the interest. If Bitcoin rises to a higher point, he won’t sell. If it keeps staying within the cost range, and it still can’t meet the profit rate, then selling will happen. This is how you get a “death spiral”—the more it sells, the more it falls, and the more it can’t meet the profit rate. This is what we’re alert to.
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