Unless, this time is different(the most famous last words in investing), what is an 80%+ drawdown going to do to all this debt pyramiding ? Pass the popcorn.
Discussion
Almost nothing unless it goes down and stays down. Mstr debt is not collateralized
Margin calls are a thing for Saylor, he admits it. Says hes not concerned
https://decrypt.co/102897/microstrategy-saylor-margin-call-bitcoin-21000
The margin call was for the silver gate loan and only if he can’t post any other collateral. It’s Closed already
The new convertible bonds don’t have a margin call cause it’s not collateralized by bitcoin
He already saw an 80% drawdown.
Nothing happened.
Hes been pyramiding since then.
Bitcoin keeps going up...
Sure .Bitcoin will go to $1m+. Its the volatility that kills the margin holders.
Regular MSTR holders?
How?
An 80%+ drawdown and margin calls would mean assets must be sold to meet the call and MSTR would be shaken out of their BTC holdings. That would materially impact the stock price by a balance sheet impairment both directly from a BTC fall and having to sell other assets to meet the margin call.
Saylor is far more intelligent than I am, so maybe he has it covered, but I've seen legions of so-called geniuses wiped out in the markets by overextending debt in the face of volatility.
Is the amethyst client censoring my posts again ? Maybe its one of the 4 or so relays. Lol! Whatever it is, nostr is a joke. DHT Mainline protocols and proper decentralization and should solve this train smash.
It's showing me a content warning.
It's not that easy. Please watch from 29:00 and let me know.
His risks are much better covered. Pls watch from 29:00