BiyaPay Analyst: Bitcoin's First Stock MSTR Mentions Selling Coins

BlockBeats News, December 2nd, MicroStrategy hinted for the first time that they may "sell coins." The company announced that it would raise funds through an offering to establish a $1.44 billion cash reserve to withstand the "Bitcoin winter." It stated that if its internal metric mNAV falls below 1 and it is unable to refinance further, it will consider selling some of its Bitcoin. This news broke its long-standing "never sell" stance and, coupled with around $820 million in convertible bonds pressure, caused its stock price to plummet by more than 12% at one point on Monday, expanding its year-to-date decline to about 40%. Bitcoin also fell more than 4% in sync.

BiyaPay analysts believe that this release signals that top institutions are starting to reserve the "abandon ship to protect the king" option for extreme market conditions, which may exacerbate the short-term volatility of Bitcoin and related concept stocks. Users can trade US stocks like MSTR and Bitcoin with USDT on BiyaPay, but currently, it is more important to control leverage and position to avoid being liquidated passively in high volatility.