MicroStrategy stated in its latest SEC filing that a sharp decline in Bitcoin’s market value could affect its ability to meet financial obligations. Since the majority of the company’s assets are in Bitcoin, any significant drop in its price could put pressure on its finances.
The company also mentioned that if it cannot raise money through debt or equity financing at the right time or on good terms, it might be forced to sell some of its Bitcoin holdings. These sales could happen at a loss, which may hurt its financial results and make it harder to raise more funds later.
If MicroStrategy is unable to get the funds it needs or sell Bitcoin at a favorable price, it may not be able to meet its loan and dividend obligations. This could lead to a default, which would have a serious negative impact on its financial condition.
Strategy holds 528,185 Bitcoin acquired for ~$35.63 billion at ~$67,458 per bitcoin.
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