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177 sats \ 7 replies \ @evestacker 25 Jun \ parent \ on: Bagholders Beware: Strategy Is So Fucked (FT, Craig Coven) Stacker_Stocks econ

"Walking away "

is not just simple or possible because he doesn't own the Bitcoins personally or directly, they belong to a publicly trade corporation.
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266 sats \ 6 replies \ @Undisciplined 25 Jun

The point is that it's not a huge problem if the bitcoin can actually buy back the shares. The treasury company would still have a bunch of bitcoin behind their shares, for whatever shareholders remain.

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57 sats \ 4 replies \ @evestacker 25 Jun
Even if the treasury still has Bitcoin, the remaining shareholders see their stock portfolio value decimated.
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6 sats \ 3 replies \ @Undisciplined 25 Jun

That depends on whether bitcoin recovers

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11 sats \ 2 replies \ @evestacker 25 Jun
If Bitcoin climbs back above Strategy's average purchase price of $75,651, then their entire crisis is solved.
However, if it continues to drop, the the company's preferred stock structure fundamentally changes the outcome for the remaining shareholders.
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6 sats \ 1 reply \ @Undisciplined 25 Jun

That ignores accretion

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6 sats \ 0 replies \ @evestacker 25 Jun

Sure 👍

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6 sats \ 0 replies \ @BlokchainB 25 Jun

Bingo!!

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