Arca Chief Investment Officer: The strategy does not require selling BTC unless the decline reaches a level where selling is no longer relevant

Arca's Chief Investment Officer Jeff Dorman stated this morning: "For years, I have been debunking the misconceptions about Strategy (MSTR), yet every time BTC drops, the same nonsense resurfaces ------ some will say MSTR will be forced to sell BTC, or that its holdings will be liquidated, as if this were some leveraged perpetual contract… Anyone who spends less than five minutes consulting any debt or equity expert will understand that unless the drop in BTC reaches a level where MSTR's selling behavior becomes insignificant, MSTR does not need to sell BTC at all."

Dorman added that the reasons MSTR does not need to sell BTC are mainly as follows: 1. Considering that Saylor holds 42% of the shares, it is almost impossible for activist investors to control the board; 2. There is no mandatory selling clause in the debt terms; 3. Interest expenses are within a controllable range (don't forget that its core technology business can still generate positive cash flow); 4. Very few companies default due to debt maturity (investors are like a herd, almost always choosing to extend debt ------ solving problems through delay).