Jeff Dorman straightforwardly said: Either sell tokens to pay interest, or default—both paths lead to a cliff.

BlockBeats News, May 29 — Arca Chief Investment Officer Jeff Dorman stated that the current approximately $15 billion preferred stock financing structure of Strategy is "out of control." He pointed out that these preferred stocks require about $1.5 billion in dividends annually, and with Bitcoin prices continuously fluctuating, this structure is becoming increasingly difficult to sustain. Strategy's financing model is based on the premise that "BTC will continue to rise significantly." Although the company previously alleviated short-term default risk through issuing additional shares, its decision to repurchase bonds maturing in 2029 is perplexing.

He said that Strategy may ultimately have only two options: sell BTC to pay preferred stock dividends or stop paying dividends, both of which would have significant impacts on the company and investors. Meanwhile, Strat