Still not listening? MicroStrategy founder hints at further additions, Bitcoin holdings already show paper loss of $13 billion.

MicroStrategy Founder Hints at Adding More Bitcoin, Despite Current Unrealized Loss of $13 Billion, Sparking Market Doubts About Its Fundraising Model and Credit Crisis. However, Some Wall Street Institutions Still Believe Its Financial Risks Are Controllable.

MicroStrategy Founder Hints at Adding More, Bitcoin Holdings Face Massive Unrealized Loss

Amid unrealized losses on holdings, continued decoupling of preferred shares, and calls from some analytics firms to pause purchases, Bitcoin treasury company MicroStrategy (Strategy) has again signaled potential additions. If realized, this would mark the fourth consecutive week of Bitcoin purchases since selling 32 Bitcoins.

MicroStrategy founder Michael Saylor yesterday (6/28) posted the company's Bitcoin acquisition tracking chart on social platform X, accompanied by the text "We're going to need more charts," which typically signals that MicroStrategy has added Bitcoin, sparking market discussion.

MicroStrategy currently holds a total of 847,363 Bitcoins, with an average cost basis of $75,646 per Bitcoin, and a holding value of approximately $50.8 billion. However, since Bitcoin recently fell below $60k, hitting its lowest level since October 2024, it now faces an unrealized book loss of $13 billion.

Source: Michael Saylor MicroStrategy Founder Hints at Adding More, Bitcoin Holdings Face Massive Unrealized Loss

Growing Criticism, MicroStrategy's Fundraising Model Faces Credit Crisis

As MicroStrategy's stock price and preferred share prices plummet simultaneously, internal industry and media criticism is also increasing. CryptoCity compiles the following:

Ripple CEO

According to CNBC, Ripple CEO Brad Garlinghouse criticized that MicroStrategy's team's over-reliance on financial engineering has harmed the broader cryptocurrency market, and the significant discount on its preferred shares is a signal of flaws in its financing model.

CryptoQuant

Blockchain data firm CryptoQuant's head of research, Julio Moreno, pointed out that due to debt buybacks, MicroStrategy's annual dividend obligations have surged to $1.2 billion, its cash buffer has severely shrunk, and dividend coverage duration has fallen to 14 months.

To restore STRC price to par, reserves need to reach approximately $2.8 billion, equivalent to 24 months of dividend coverage, so CryptoQuant strongly recommends the company pause purchases and bolster reserves.

• **Related Report: **Bitcoin Unrealized Loss of $10.6B! Analyst Warns: MicroStrategy Should Stop Adding and Replenish Cash

Peter Schiff

Gold bull and Bitcoin skeptic Peter Schiff stated that MicroStrategy's stock price has fallen to a new low below $100, and discounted fundraising will dilute existing shareholders' equity. If Bitcoin remains sluggish, the company will face liquidity pressure to sell assets.

**Related Report: **First Drop Below $100 in Two Years! MicroStrategy Stock Weakens, Peter Schiff Warns of Liquidation Crisis

CoinDesk

CoinDesk's head of markets, Omkar Godbole, analyzed that MicroStrategy's preferred shares STRC, originally designed to generate stable returns, have seen their 90-day correlation coefficient with Bitcoin climb to nearly 0.70, significantly weakening their appeal as a relatively stable income source.

Recently, the company was forced to sell 32 Bitcoins to pay interest, breaking its long-standing stance of "never selling Bitcoin."

• **Detailed Report: **MicroStrategy Preferred Shares Drop to $75! Despite Enough Reserves for 10 Months of Dividends, Why Are Retail Investors Still Lacking Confidence?

Fortune Magazine

Fortune Magazine senior contributing editor Shawn Tully pointed out that MicroStrategy needs to pay $1.5 billion annually in preferred share dividends but has insufficient cash on hand. This cycle of continuously issuing new shares and cash outflows will significantly increase the company's risk of financial distress. This high-stakes gamble could trigger a death spiral for the company.

• **Detailed Report: **Fortune: MicroStrategy's Magic Is Gone, Could Trigger 'Death Spiral,' But Two Wall Street Institutions Don't Think So

Two Wall Street Institutions Support MicroStrategy

Compared to the above pessimistic forecasts, some professional analysis institutions on Wall Street have given positive assessments of MicroStrategy's long-term operational model.

Wall Street analytics firm Benchmark analyst Mark Palmer believes that claims of a death spiral for MicroStrategy are overstated. Because MicroStrategy's preferred shares have no mandatory maturity date, and the company still has approximately $1 billion in cash reserves available for dividend payments, discounts do not mean its reserve model has failed.

Another institution, TD Cowen, also expressed support in a report, stating that MicroStrategy's financial burden of paying preferred share dividends remains fully controllable, and such instruments can effectively mitigate asset volatility during market corrections.

Additionally, MicroStrategy CEO Phong Le defended the company, stating that it has changed preferred share dividend payments to twice monthly to stabilize market prices. Supporters believe that as long as Bitcoin returns to a bullish cycle, MicroStrategy, with its large holdings, still has the opportunity for its company valuation to recover.

Further Reading:
MicroStrategy Hints at Buying Again! Legendary Trader Eugene: Already Shifted to Stock Market, Bitcoin Untouchable for Now