Is there a risk of liquidation for a company that holds 110,000 bitcoins in leverage?

A bounce is not a bottom, a bottom is not a bounce.

Is there a risk of liquidation for a company that holds 110,000 bitcoins in leverage?

The most most most constant in every cycle of market ups and downs is human nature, and this is the root of the maniac’s difficulty in making mistakes in judging major trends over the years. Analysts are held up to the sky, retail investors are very happy when this time, even if it is not the top, but also from the top will not be too far, this time to do is to come out of the wait and see, waiting for most people are hedged; on the contrary, when all analysts do not want to analyze the market, being scolded by the dog’s blood, you will gradually, enjoy buying it, this time to buy not only safe, and likely to be the bottom of the range. Remember what the maniac always says, “rebound is not the bottom, is the bottom not rebound”, the meaning of this statement, is that when people’s emotions are ground to the bottom and extreme, the market will bring you gains again, and now, obviously not yet to this stage, so this stage of the market to do things, is to let more people lose confidence, the Give up the struggle and surrender. Take the maniac’s own data, some time ago the reading volume continued to stabilize above 55,000, recently fell back to 40,000 above, indicating that some people have lost interest in the market, if the reading volume can return to the 35,000 band, the bottom of the stage will appear at first glance, the market will be ready to appear a wave of severe rebound, so the opportunity is always reserved for those who persevere, for most investors To say that the final elimination by the market is inevitable.

In 2018, the maniac from 3000-6000 has been shouting here is the bottom range, but at the moment but 100% of the amplitude space, whether 5000 buy, 4000 buy, bitcoin back to more than 3000 continued to cross, are difficult to survive extremely, but ultimately, when bitcoin on the 60000, but is 10 times or 20 times the difference, maybe you stand at the moment very confused, also very painful, but in the near future, you will still laugh at life, because we choose, is a belong to the next 10-20 years of the bright road.

Today there is no news, maniacs talk about a period of time online widely circulated MicroStrategy things, many foreigners are worried about this company with the fall of bitcoin appeared to burst, because MicroStrategy most of the bitcoin bought are relying on the issuance of debt to buy, we can simply think that the leverage, this company currently holds a total of 110,000 bitcoin, once because of the fall and burst, the market will be catastrophic.

Madman took a closer look at the composition of its bonds and financials and found that the company does not have any risk of a blowout and there is no possibility of shareholders asking the CEO to sell bitcoin, as summarized below.

CEO Machael Saylor holds a Class B stake in the company with 10x voting rights, so he holds 72% of the company’s voting rights. The company is his alone, and no one else can prevent him from holding bitcoin, not even a veto.

the company currently has two financing bonds, one maturing in 2025 at 0.75% per annum for $650 million and another maturing in 2027 at 0%.

the company will continue to own these bonds by paying only the interest on the bonds each year, and will not need to pay them back early even if bitcoin falls to insolvency.

This means that MicroStrategy would only have to pay $4.875 million per year in interest on the bond financing, while the company’s annual net profit is at $50 million, according to its financial statements.

its financial situation could therefore fully cover all the interest on the bonds and there is no risk of default or early repayment, meaning that MicroStrategy is not at risk of bankruptcy until 2025, as long as the bitcoin price remains above $40,000.

Even in the worst case scenario, where bitcoin falls to the point where the company’s assets cannot repay the bonds, then bankruptcy is just that, but more likely, the company gets all the proceeds of bitcoin’s future rise to $100,000 or more through massive leverage;.

After reading this playbook, Madman admires the CEO for what is arguably the most extreme way to use super leverage to “empty the glove”.

QR Capital will launch its first South American bitcoin ETF on June 23rd, and as South American countries continue to be bullish on bitcoin, this bitcoin ETF should sell well and be a nice boost to the market.

JP Morgan Chase report shows that El Salvador will not bring any economic benefits by making bitcoin a legal tender, such a report would be good to hear, and the anti-dollar thing the US certainly won’t be willing to do. In this way, the U.S. has almost no way out except to continue buying bitcoin, which can really control bitcoin pricing power. Only when bitcoin rises to sky-high prices and gets everyone on board can the U.S. complete its devastating blow to the economies of these countries, so in retrospect over the next few years, the location of the U.S. institutions building positions is still the floor price.

The chain analyst said he would lower his bitcoin price forecast to $200,000 this year, after he predicted it could rise to $300,000, which is not much different, but still bullish anyway.

Panic index 28, extreme panic just turned to panic and smashed down today, it looks like tomorrow will be another extreme panic.

Sentiment Analysis

A wave down in the morning, the whole day narrow oscillation, this trend often indicates that will also create a new low, so 35000 below a moment should be seen, the big box trend, 34500 near is a relatively strong support, the maniac still think that the near future will be in the box oscillation, there is no direct basis for a new low, so this wave of retracement, will still be a good buying opportunity, if there is a chance to stand again 38000, means that will be a direct breakthrough 40000.


Has shaken back to a strong support level, today there are signs of stopping the decline, is expected to rebound after the market is dominated.


Slot auction time has not yet been determined, patiently wait for the expected clarity.


Selling pressure is not much, linkage is dominant.


Pullback is large, you can consider gradually buy to fight a rally.


Rebound did not break through the pressure level directly, need more time for consolidation.


Maintain the original decision, if there is a recent new low, it will be a good time to participate.


Project development is not bad recently, you can consider buying on the decline and wait for the rebound.


Linkage is dominant.


Not much upward expectation, and Musk is not very outspoken lately.


This position can consider participating in some, diluting the cost.

The actual coin price has been oscillating in 33000-40000, not much fluctuation, more just the human level fluctuation.

Posted by:CoinYuppie,Reprinted with attribution to:
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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