gFam.live (UrbanGladiator) pfp
gFam.live (UrbanGladiator)
@gfam
I'm not a finance guy, so please correct me if I'm wrong. With the US Treasury cleared to sell $6B worth of Bitcoin, and MicroStrategy's share price dependent on their Bitcoin holdings... isn't it likely that MicroStrategy is going to have to sell... especially if people short their stock? Has MicroStrategy created it's own short-squeeze with its BTC holdings?
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meta-david 💥| Building Scoop3 pfp
meta-david 💥| Building Scoop3
@metadavid
Hmmm, why would they need to sell in the scenario a significant number of people short their stock?
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gFam.live (UrbanGladiator) pfp
gFam.live (UrbanGladiator)
@gfam
I really don't know too much about it... but essentially their investors are loaning them USD to buy BTC. MicroStrategy has to pay investors interest and the principle when it matures. If BTC drops and the loans are due... they have to sell BTC or their stock to pay USD. If BTC and their stock drops, they have to sell a lot more of either to repay.
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