Arca CIO Warns of Growing Risks in Strategy's $15B Preferred Stock Model
Jeff Dorman, Chief Investment Officer at Arca, warns that MicroStrategy (MSTR) is facing a potential collision course between Bitcoin holders, shareholders, and preferred investors due to shrinking cash reserves. With only $871 million in USD liquidity against annual dividend obligations of around $1.5 billion on its $13.5B preferred stack, the firm may be forced into difficult choices if Bitcoin does not rally or new capital dries up.
Tickers: $MSTR
Topics: Bitcoin cash reserves debt buybacks MSTR (MicroStrategy) preferred stock