Whoa! Jeff Dorman has completely broken down MicroStrategy's capital structure and issued a clear warning: absolutely avoid MSTR common stock right now! In an extreme scenario where MicroStrategy faces default, the safest assets are actually the bonds. Currently, $7 billion in debt is backed by $56 billion worth of Bitcoin, which can fully cover the liabilities. If default risks escalate, bond prices will immediately revert to face value. The next safest option is preferred stock. $15 billion in preferred stock combined with the debt totals $22 billion, still backed by massive Bitcoin assets. In liquidation, investors can recover their principal. However, people who buy preferred stock are after dividends, and if the company is forced to cut dividends, the price could plummet by 30-40%. The riskiest of all is MSTR common stock. Dorman bluntly stated that the current situation is extremely dire, and there’s no reason to hold MicroStrategy stock. Even Bitcoin itself is under immense pressure, as MicroStrategy, being the largest holder, may be forced to sell off its holdings in the foreseeable future. Although Michael Saylor has always managed to pull off miracles in the past, his previous move of aggressively issuing $16 billion in preferred stock has left many baffled. The overall risk now far exceeds what it was nine months ago. Stay away from high-risk zones and hold onto your chips tightly!