Jiang Zhuoer: MicroStrategy suggests that it will continue selling coins to pay interest in the future, but the company is not at risk of being liquidated due to leverage.

BlockBeats News, June 18 — Leapit Mining Pool (B.TOP) founder Jiang Zhuoer commented on MicroStrategy’s post “Its BTC reserves can pay dividends for 32 years,” saying that MSTR (MicroStrategy) holds $55 billion worth of BTC; each year, it only needs to pay $1.7 billion in STRC dividends. By selling BTC, it can cover dividend payments for 32 years.

It should be noted that STRC is preferred stock, not a bond, so there is no requirement to repay principal. Therefore, MSTR has no risk of being forced to liquidate due to leverage, and it also won’t be unable to pay dividends. However, STRC is already severely de-pegged, meaning it can no longer be refinanced. Although MSTR has bought BTC over the past two weeks, it has done so by issuing additional common stock, so it’s impossible for this to happen every time.

This is a message to the market: don’t be surprised if the company sells BTC to pay dividends in the future. Although the amount sold is not much relative to the entire BTC market, the impact on market confidence will be significant, because MSTR has started to sell coins in a substantial way. Not everyone knows that STRC is equity rather than debt; many people will be afraid that “this big bomb from MSTR will blow up at the bottom of the bear market.”