Saylor's Green Dots: A New Bitcoin Play?

For a year, Michael Saylor has signaled MicroStrategy's Bitcoin purchases with orange dots on X posts, but recently introduced 'green dots.' This subtle change fuels speculation about potential stock buybacks or, more controversially, Bitcoin sales. The company's CEO, Phong Le, confirmed that while there's no short-term refinancing risk, MicroStrategy could sell Bitcoin to cover preferred equity dividends if its market value dips below net asset value.

This potential shift is significant as Saylor has consistently advocated against selling Bitcoin. MicroStrategy, the largest corporate Bitcoin holder with nearly 650,000 BTC, has seen its stock price plummet by 41% year-to-date. This downturn limits its capacity to raise funds by selling common stock for further Bitcoin acquisitions.

Consequently, MicroStrategy has turned to issuing preferred shares to finance Bitcoin purchases. However, critics question the company's long-term ability to manage preferred dividend payments without diluting common shareholders or liquidating its substantial Bitcoin holdings.