Michael Sylor admits that shareholders of the strategy “would suffer” if Bitcoin “would fall 90% and stay there for 4 or 5 years”

• The president of the executive strategy Michael Sylor The shareholders of the company admitted would “suffer” if the Bitcoin price fell for several years. The world’s largest corporate headline has about $ 59 billion in cryptocurrency and continues to invest so that the company can buy more. Although the company has a lack of cash comparatively with its crypt farms, questions are asked about its service capacity.

The President and the Evangelist Crypt of the Strategy, Michael Sylor, revealed that if Bitcoin fell by 90% and remained for about half a decade, the company would be stable, but capital headlines were erased because the strategy is strongly used by offering debt and bond offers.

The business software company strategy (known in a microstrategy form) is the world’s largest corporate bitcoiner. In converting the sales of shares and the emission of convertible bonds into cryptocurrencies, the company now has 568,840 BTC for almost $ 59 million.

Sylor’s investment strategy is to place all its cards in Crypto.

“We believe that Bitcoin is the highest form of property, the APEX property in the world and is the best investment asset,” said Sylor Yahoo. “So the final game is to acquire more bitcoin. Whoever gets more Bitcoin wins. There is no other final game.”

Instead of focusing on the organic growth of their business software, previous Bank of America Craig Coben, Capital Capital Head Financial time The company focuses on “new recruitments” and “new money”.

In an effort to collect capital to buy more bitcoin, the company launched a new favorite offer of bags In January, he pays a dividend and includes a liquidation preference at $ 100 per action, which means that investors will be paid that the amount of the company was liquidated. Investment vehicle raised $ 580 million, according to the Beat.

In addition, in March, the company launched another offer, the favorite perpetual shares, again, to raise money to buy bitcoin. This offer “will be paid only in cash”, according to a release.

Although the strategy explores each avenue to invest more money in Bitcoin, Coben said that the movements “ask questions about the sustainability of what they do”, especially if the Bitcoin craters.

On March 31, the strategy had $ 60.3 million in cash, only a fraction of $ 43.5 billion it had on Bitcoin, according to its form 10-Q. If the company became “forced to sell” their bitcoin “with a significant loss” in order to fulfill the labor capital requirements, a Sylor practice Firmly oppose“Our business and our financial situation could be adversely affected.”

In February after Bitcoin fell 13% in a week, Sylor published AX: “Sell a kidney if necessary but keep bitcoin.”

Sylor stays forcefully about the safety of the company, even if there was a crypt crisis.

“Our capital structure is built (therefore) that Bitcoin could fall by 90% and stay -four or five years, and we would still be stable,” Sylor told Sylor Beat.

However, although the company would be stable, Sylor said that shareholders are more susceptible to substantial loss if the coin sinks.

“It would not be a good result for equity holders,” Sylor said. “The people at the top of the capital structure would suffer because they are leveraged, but all others in the capital structure will be paid.”

Although the strategy has assumed a substantial debt to finance its bitcoin purchases, a fall in the crypt price “almost safely would have a greater fall” in the price of the shares of the strategy, previous Cytigroup Said CEO Dave Weiseberger Fortune. 

Despite a recent bitcoin slide, cryptocurrencies has increased almost 20% this month and more than 65% for a year.

“Whenever Microstrategy can continue to command a premium for its net -asset value, the strategy will continue to profit for shareholders,” Coben said.
Strategy and Sylor did not return Fortune Request for comment.

This story originally presented to Fortune.com

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