MicroStrategy's first admission "may sell coins", the "never sell" myth has been shattered?

Question

On December 2nd, something quite magical happened in the crypto world - MicroStrategy, which had always insisted on “never selling Bitcoin,” suddenly changed its stance.

The company has created a cash pool of $1.44 billion through this stock issuance, claiming it is to prepare for a possible “crypto winter.” More importantly, they have publicly acknowledged for the first time that if the internal mNAV indicator falls below 1 and they cannot continue financing, they may indeed consider selling some Bitcoin.

The market reaction has been quite direct. On Monday, MSTR's stock price plummeted over 12% during the session, and its cumulative decline for the year has now expanded to around 40%. Bitcoin has not been able to escape this trend, falling by more than 4% as well. It's important to note that this company is carrying around $82 billion in convertible debt pressure, and this statement seems to be telling the market: “We also need to leave ourselves a way out.”

To be honest, when leading institutions start openly discussing the “coin selling plan”, the signal conveyed is quite thought-provoking. This doesn't mean that the sky is going to fall, but at least it indicates that even the most steadfast HODLers have to weigh the issue of cash flow in the face of extreme market conditions.

In the short term, such news can indeed amplify market volatility. At this point in time, managing leverage ratios and position distribution may be more important than chasing any rebound opportunities. Don't let yourself fall into a situation of passive stop-loss.

SchroedingerGas · Accepted Answer

Haha, this is getting interesting. The myth of never selling has been shattered, and now it has to rely on financing to survive.

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Selling coins when mNAV drops below 1? This B plan should have been in place long ago; there was too much hype.

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A 12% fall isn&#39;t enough; let&#39;s wait and see what happens next.

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With $82 billion in debt, to put it nicely, it&#39;s all about allocation, but to put it bluntly, it&#39;s a bet that Bitcoin won&#39;t big dump.

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The key is still the ability to finance; if they can&#39;t raise money, it&#39;s really time to move coins.

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Just a couple of days ago, they were still talking about never selling; now they&#39;re starting to discuss contingency plans. This pace is indeed a bit rushed.

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Bitcoin is down 4% as well; the market really believes this situation.

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It&#39;s just putting a fuse on their aggressive strategy; it&#39;s a smart person&#39;s move.

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Wait, how is the mNAV indicator determined? It seems easy to manipulate.

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If they keep boasting, they&#39;ll go bankrupt; changing their tune at the right time is also unavoidable.

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I just want to see if they really will sell when it gets to that point; I&#39;m betting they won&#39;t sell.

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The financing pool is the main character here; how long can $1.44 billion last?

GasFeeCrybaby · Answer

Haha, the promise of "never sell" has just shattered, it&#39;s really absurd.

Where is the faith that was promised? Just turning around and opening a backdoor for themselves, now these big institutions are also starting to play the "leave a way out" game.

MSTR&#39;s operation this time is simply telling retail investors that institutions are also scared.

They are all starting to hoard cash, this signal cannot be ignored.

The era of following the crowd to sell coins may be coming, which is a bit concerning.

The mentality has collapsed, "never sell" has turned into "might sell forever".

With 82 billion in debt weighing down, saying they won&#39;t sell means they have to sell, this is called being forced.

Just listen and don&#39;t believe these pretty words anymore, the promises from institutions are as fragile as paper.

It&#39;s true, once the market is bad, they immediately change their tune, all those previous statements can be disregarded.

So we still have to look at on-chain data, don&#39;t be fooled by these companies.

This is reality, there is no everlasting faith, only everlasting interests.

WhaleStalker · Answer

Haha, the strategy has failed, "never sell" is just that much.

I&#39;ve seen this trap too many times, it sounds nice when it&#39;s called "strategic adjustment."

If the capital chain is tight, any promise is worthless.

ForkLibertarian · Answer

Haha, the myth of never selling has shattered, reality is just this face-slapping.

MSTR&#39;s operation is indeed like shooting first and drawing the target later, the 1.44 billion cash pool sounds good, but it is just finding a way out for themselves.

To be honest, when institutions start discussing plans to sell coins, retail investors should be on alert.

ShitcoinConnoisseur · Answer

Haha, isn&#39;t this a slap in the face? Never sell and yet… forget it

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When mNAV falls below 1, do we have to sell coins? Sounds nice, but it&#39;s really just a lack of money

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This wave of operations from MSTR really scared the market; a plummet of 12% is just unbelievable

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With 82 billion in debt hanging over us, who wouldn&#39;t panic? Now they&#39;re starting to lay the groundwork for an escape

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Used to talk tough, now turning around to say "might consider"; laughable

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When institutions start discussing plans to sell coins, a major event isn&#39;t far off, really