Michael Saylor spent over $50 BILLION over 5 years buying $BTC, and heâs now underwater.
Most people think it's IMPOSSIBLE.
Because Saylor has a lot of liquidity to stabilize his position.
But recent market crashes and events around $BTC lead to one HUGE problem.
STRATEGY IS ABOUT TO COLLAPSE.
If you are holding any CRYPTO, you CAN'T MISS this post.
First of all, it didnât start as some extreme Bitcoin vehicle.
As a matter of fact, 10 years ago, Saylor said Bitcoin would go to zero and be gone by now.
But he slowly turned into a Bitcoin accumulation machine, and his setup looks EXTREMELY dangerous.
The strategy was simple:
1: Get money from investors
2: Buy more BITCOIN
3: BTC pumps and stock pumps as it's leveraged
4: Saylor raises more money
5: Repeats the whole scheme
Buy more BTC -> BTC goes up -> Investors sitting in profit -> Repeat
Saylor has done this HUNDREDS of times through large convertible note deals.
This loop works great when prices are going up.
But now Bitcoin dumped to $76K, below Strategy's average.
The worst thing is that MSTR stopped trading at a large premium, and things changed quickly:
â Issuing shares became painful dilution
â Convertible buyers demand better terms
â Investors afraid of crypto volatility and recent CRASH
â Every âStrategy buys more BTCâ starts getting sold
Now Saylor may be FORCED to sell his Bitcoin.
We have THREE scenarios when it can happen:
FIRST SCENARIO
The market valuation of the entire company becomes less than the value of its Bitcoin treasury.
In this scenario, Strategy sells a stake in â$1 of Bitcoinâ for 95 cents. Uses that cash to buy Bitcoin at market price. And destroys the Bitcoin yield per share.
SECOND SCENARIO
Access to capital disappears.
Saylor canât raise money via debt or new issuance on acceptable terms because investors are afraid. Capital markets are either closed or too expensive.
THIRD SCENARIO
Massive preferred dividends need to be paid.
While mNAV > 1 and the market happily provides capital, dividends are effectively covered by the NAV premium arbitrage.
If the premium vanishes and capital access tightens, the whole structure starts to creak.
Then selling some BTC becomes mathematically justified. According to Le, in such a scenario, selling Bitcoin is seen as a way to protect Bitcoin yield per share and service obligations.
So they have NO GOOD scenario right now.
And Michael Saylor knows it.
In the early 2000s, MicroStrategy collapsed after aggressive accounting and leverage during the dot-com bubble.
The stock fell over 90%, and Saylor personally lost BILLIONS of dollars. This isnât his first rodeo.
A single public company turned itself into a GIANT LEVERAGE around Bitcoin. And now this company is about to collapse.
The worst thing? They will DUMP 700K of $BTC on this collapse.
But don't worry, I have been in the market for over 10 years now and predicted every massive CRASH.
Follow me and turn NOTIFICATIONS ON and I will tell you when I exit the market before it's too late.
Many people regret not following me earlier
$BTC #TrumpProCrypto #StrategyBTCPurchase #USCryptoMarketStructureBill #MarketCorrection
