Just to clarify, MicroStrategy's current average cost for holding Bitcoin is $74,079 per BTC. Even if BTC pulls back to $103,475, the company still has a 39.68% unrealized gain. Unlike other MicroStrategy companies, Strategy has always financed its Bitcoin purchases by issuing convertible bonds. The advantage of this approach is that if the company wants to raise funds to buy more Bitcoin but doesn’t want to dilute shareholders by selling stock, it can keep issuing long-term convertible bonds to investors. Investors, in turn, are willing to accept a certain interest rate to hold these bonds because they have the option to convert the bonds into stock in the future. MicroStrategy (MSTR) takes the money raised and directly buys BTC. If BTC rises in the future and the stock price follows, investors will convert their bonds into stock to make more money, effectively making the debt issued by Strategy disappear. However, if the crypto market enters a bear phase and the company’s stock price keeps dropping, investors might not rush to convert their bonds into stock. Instead, they’ll hold onto the bonds until they mature in 2028, 2029, or 2030. The current challenge for Strategy is: if the stock price doesn’t perform well, will there still be buyers for new bond issuances? After all, the amount of Bitcoin they’ve been adding weekly has noticeably slowed down, indicating some lack of financing momentum. But right now, all MicroStrategy companies are facing this issue—slower financing and fewer funds available to buy Bitcoin.