Saylor's operation is increasingly looking like a Ponzi spiral; preferred stock dividends will eventually explode, revealing the truth within four months.

Arca Chief Investment Officer Jeff Dorman pointed out that the MSTR situation has gotten out of control, speculating that Michael Saylor issued billions of dollars in preferred shares in hopes that BTC would surge, then paid dividends by selling BTC. After BTC declined, the market worries that the approximately $1.5 billion in preferred shares corresponds to $150 million in annual dividends. To ease short-term default risks, MSTR raised $200 million through stock financing, but then used cash to buy back bonds due in 2029 instead of paying dividends, exposing cash flow issues. In the next four months, one party may face significant losses.