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Concerns Raised Over Strategy Inc.'s Cash Flow Model
11/24/2025, 18:37
AI SUMMARY
●• Analysis questions sustainability of Strategy Inc.'s debt and dividend model
●• Company reportedly holds $54M cash against $700M annual obligations
●• Critics argue the model faces significant risks in the coming quarter
Mario Nawfal has raised concerns regarding a potential "math error" in the business model of Strategy Inc. (likely referring to MicroStrategy). The firm reportedly holds nearly 650,000 BTC, representing over 3% of the total supply, acquired at a cost of over $48 billion.
However, critics point out that the company has only $54 million in cash reserves against an estimated $700 million in annual preferred dividend obligations. This discrepancy suggests the current model may face sustainability issues within the next 90 days without new financing or strategic shifts.
The analysis questions the viability of such aggressive leverage and accumulation strategies when cash flow buffers are thin relative to debt service requirements.