It’s basically impossible for Strategy to get margin called.
The dividends on their preferred shares are not obligatory. They can suspend them anytime indefinitely with no blowback beyond pissing off a bunch of investors.
Most of their purchases were from stock dilution, not debt. So BTC can go to $20k and as long as Strategy suspends preferred share dividends, they probably don’t get margin called.
FnCraig on
$21,000 in the short term would force them to liquidate a portion of their BTC, but they could just add more collateral, so that probably wouldn’t do it.
If BTC is under $66,384 when their convertible bonds start to expire, that could also do it, but that’s years away.
The likelihood is pretty small.
partymsl on
Gotta give him one thing… even at this age he is giving us new meme templates every day.
Flowa-Powa on
Was meming that your own idea? It’s going to run for years
Tay_Tay86 on
Liquidated? Low. But remember they were given a premium by investors for their holdings.
The stock could sink into the 50s
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It’s basically impossible for Strategy to get margin called.
The dividends on their preferred shares are not obligatory. They can suspend them anytime indefinitely with no blowback beyond pissing off a bunch of investors.
Most of their purchases were from stock dilution, not debt. So BTC can go to $20k and as long as Strategy suspends preferred share dividends, they probably don’t get margin called.
$21,000 in the short term would force them to liquidate a portion of their BTC, but they could just add more collateral, so that probably wouldn’t do it.
If BTC is under $66,384 when their convertible bonds start to expire, that could also do it, but that’s years away.
The likelihood is pretty small.
Gotta give him one thing… even at this age he is giving us new meme templates every day.
Was meming that your own idea? It’s going to run for years
Liquidated? Low. But remember they were given a premium by investors for their holdings.
The stock could sink into the 50s