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Michael Saylor on the cover of Forbes! Praised as the 'BTC alchemist', will BTC big dump 80% only impact MicroStrategy?
Michael Saylor, the founder of the dominant US listed company BTCHoldings MicroStrategy, was featured on the cover of Forbes on the 30th and praised as the "BTC Alchemist". The article mentioned MicroStrategy's strategy of purchasing a large amount of BTC through issuance convertible bonds, believing that this is Michael Saylor's magic. The article also mentions that since 2021, MicroStrategy has issued six rounds of convertible bonds with a total amount of 7.3 billion US dollars and an interest rate ranging from 0% to 2.25%. Investors are rushing to buy, with companies like Allianz and Deutsche Bank heavily involved. The return on these bonds exceeds 250% and has become one of the strongest bond investments in the market. According to Forbes analysis, Michael Saylor's strategy is simple: "borrow money, buy BTC, push up the price, and issue more stocks", and then repeat this cycle. When Wall Street is still thinking about his next step, he has also introduced a new financial indicator "BTC Yield" to calculate the ratio of BTCHoldings rise to fully diluted shares. If BTC continues to rise, everything will go smoothly, but what if BTC experiences a big dump like in 2018 or 2022? According to Michael Saylor, MicroStrategy is very safe, and BTC needs to experience an 80% big dump and maintain it for two years to pose a real threat to the company. Bitwise's Head of Strategy, Jeff Park, analyzed that MicroStrategy's balance sheet has almost no real debt, and these debts are unsecured, so even if the market falls, it will not trigger forced liquidation of BTC assets. Michael Saylor is not worried about this. He believes that with Trump-friendly cryptocurrency policies, coupled with the rising US national debt, BTC will only become more attractive, repeatedly emphasizing that "cash is trash".