Institutional Crypto Executive Warns MicroStrategy’s Bitcoin Capital Ring Is Collapsing

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Jeff Dorman, chief investment officer at Arca, said that the stockpiling strategy has pushed Bollin to the breaking point, where he has become about $15 billion in premium shares and $1.5 billion in annual profits, now facing weak cash reserves and a drop in the price of bitcoin (btc).

These warnings came after the company used most of its reserves to buy coupon-free convertible bonds with a value of $1.5 billion due in 2029.

premium stock problem

Microstrategy holds 843,738 bitcoins until May 25, after it has been created excellent stock structure A total of about $15.5 billion from the STRC, STRK, STRF, and STRD series.

تحميل STRC chip واحدها ديسفات رقبة فريدة قامت على تحميل raise it to 11.5%.

Dorman explained that the issue of these shares was based on the fact that the price of btc will rise as soon as it falls, which allows the sale of bitcoins in the future to finance those distributions.

I’m not in Saylor’s inner circle, but this one $MSTR The story has become so different, my only guess is this:

– MSTR could be sitting and doing nothing before starting to pump $ billion of prefs… would have made MSTR boring (few buys, no sells), but it would have been…

– Jeff Dorman (@jdorman81) May 28, 2026

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Bitcoin is now trading near $72,550, down 6% over the past week, despite the implication behind this bet.

Instant repurchase

In May, the strategic purchase of convertible bonds with a strategic value purchase of strategic convertible bonds with a strategic value of $1.5 2029 against approximately $1.38 billion in cash, thus positive a discount of 8% but still The cash reserve is worn out.

The bonds that were retired were without coupons, making it time to renew the coupon purchase, due to the high dividend payout obligations.

Dorman said that holding mstr and btc and the premium shares are currently in trouble. Someone is going to lose big here, and it’s going to happen over the next 4 months.

There are now three groups of interested parties competing for the same interest

A report from among the cryptos mentioned that a possible sale of bitcoin to finance the distribution of dividends tomorrow will be a long-term solution, while the reduction of the payments will punish the holders of the preferred shares.

Watch out for the next capital move for Microstrategy, where you’ll see any love interest first.

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