plebiANON on Nostr: jack mallers the answer to the question about not caring about the #bitcoin holders ...

jack mallers (npub1cn4…3vle) the answer to the question about not caring about the #bitcoin holders on your Q&A is actually a lot simpler than you were trying to think through. The simple answer is, by introducing the preferreds, you now have to pay them via selling bitcoin or selling shares because the operating cash flow cannot support it. Both of those options send the share price down because the bitcoin is worth less after selling spot BTC. You have now defeated the value proposition of the company, which was, buy our shares and we will get more bitcoin than you could have just buying spot. So, the short answer is selling bitcoin also punishes the shareholders. The shareholders get a double whammy to allow some preferred yield seekers to suck out their capital investment.