How Michael Saylor’s preferred stock gamble could trigger a death spiral for Strategy

MicroStrategy’s stock is trading well above the value of its assets (roughly a 31% premium) despite most of those assets being Bitcoin and the coin recently plunging.
The company took on large preferred-stock financing to buy more Bitcoin, creating hefty dividend obligations, dilution risk and the potential for a damaging sell-off if crypto falls further.
Founder Michael Saylor broke his “never sell” pledge by selling some Bitcoin to cover a dividend, spooking investors and raising the risk of more forced sales.