According to the latest documents submitted by MicroStrategy to the SEC, the company did not increase its Bitcoin holdings this week, but instead sold 4.5 million shares, raising approximately $740 million, which has been fully injected into the US dollar reserve fund established at the beginning of this month. Coupled with the initial provision of $1.44 billion, the reserve fund has now reached $2.19 billion, which will primarily be used to pay preferred stock dividends and convertible bond interest, with annual related expenses of about $700 million. Based on this calculation, the reserve fund can cover at least three years of needs, meaning the company does not have to be forced to sell its held Bitcoins to deal with debt pressure - this stands in stark contrast to ETHZilla, which has recently fallen into liquidation difficulties. Although MicroStrategy's stock price has continued to decline recently, its holding of 670,000 Bitcoins is still quite far from the so-called "dumping crisis."
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
According to the latest documents submitted by MicroStrategy to the SEC, the company did not increase its Bitcoin holdings this week, but instead sold 4.5 million shares, raising approximately $740 million, which has been fully injected into the US dollar reserve fund established at the beginning of this month. Coupled with the initial provision of $1.44 billion, the reserve fund has now reached $2.19 billion, which will primarily be used to pay preferred stock dividends and convertible bond interest, with annual related expenses of about $700 million. Based on this calculation, the reserve fund can cover at least three years of needs, meaning the company does not have to be forced to sell its held Bitcoins to deal with debt pressure - this stands in stark contrast to ETHZilla, which has recently fallen into liquidation difficulties. Although MicroStrategy's stock price has continued to decline recently, its holding of 670,000 Bitcoins is still quite far from the so-called "dumping crisis."