The Breakdown MicroStrategy’s Big Buy Raises New Questions
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Dec 10, 2025 This discussion dives into the frustrating standstill around the market-structure bill in Washington. It highlights MicroStrategy's colossal $962 million Bitcoin purchase, raising questions about their long-term strategy versus potential risks. The conversation pivots to Michael Saylor's provocative pitch for nation-state Bitcoin reserves and the mixed public reception. Additionally, insights on crypto bank charters and warnings from Fitch Ratings about bank exposure to crypto add depth to the analysis. A compelling mix of finance and strategy!
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Market-Structure Bill Stalled For Now
- Negotiations on the market-structure bill have stalled and key senators now publicly admit progress is unlikely this year.
- Nathaniel Whittemore warns that lawmakers prefer no bad bill to a rushed bad bill, so don't expect a quick fix.
MicroStrategy Returns To Big BTC Buys
- MicroStrategy resumed large Bitcoin purchases after raising cash to cover dividends and debt for two years.
- The company funded most of the $962M buy by selling common stock, easing pressure on riskier preferred instruments.
Funding Mix Raises Dilution And Default Risks
- MicroStrategy's capital stack includes high-risk Stride preferred shares paying 10%, currently trading below par.
- Continued share dilution risks driving MNAV under 1 and forcing future Bitcoin sales or buybacks.