• 23 July, 2024
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MicroStrategy Sells BTC Holding to Pay Off Debts; Crypto Enthusiast Comments

The content creator Ben Armstrong advised the American software company MicroStrategy which recently announced the sale of its Bitcoin holdings to take the maximum advantage of Bitcoin when the cryptocurrency is at its peak. Armstrong asserted that MicroStrategy’s BTC sale is not a great deal adding that holding Bitcoin forever is gibberish as long as there is “no income”.

In a May 1 filing, MicroStrategy threw light on the various obligations the company holds, which are due in 2025. The company added that it has decided to sell off a share of its BTC holding to pay its long-term debts.

The filing read:

We have principal due upon maturity of our long-term debt instruments in the aggregate of $2.208 billion in addition to $2.4 million in coupon interest due each-semi-annual periods for the 2025 Convertible Notes, $15.3 million in coupon interest due each semi-annual period for the 2028 Secured Notes, and $0.1 million die monthly in  principal and interest related to our other long-term secured debt.

Subsequent to the announcement, Armstrong released a video on his YouTube Channel discussing his perspectives on MicroStartegy’s decision to sell its BTC holding though they were “diamond-handed”.

Notably, the crypto enthusiast posited that MicroStrategy is “a software company” and not a “bitcoin-holding company”. He added that the company owns a bunch of debt obligations supposed to be paid off by 2025.

Further, he pointed out that 2025 is expected to be parabolic and it would be better for MicroStrategy if the company profited at the top “to pay for their debt obligations”. He also referred to MicroStrategy’s revelations that the company is not able to settle its debts by selling software, indicating the necessity of the company to sell its BTC holdings. 

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