Arca CIO: The biggest risk of the strategy is that BTC price rises while stock prices remain stagnant

Foresight News reported that Arca Chief Investment Officer Jeff Dorman tweeted, "People are worried about the wrong Strategy risks. Being removed from MSCI is not a big deal (slightly negative for stocks, irrelevant to BTC), and a bitcoin crash doesn't matter to MSTR (they will never be forced to sell. They have over 2 years of cash reserves and no covenant that forces a sale).

The biggest risk is actually if the bitcoin price soars while MSTR's price remains stagnant. If it no longer tracks the bitcoin price and trades far below mNAV, then it's all over. If mNAV falls far below $0, they won't be able to raise funds through ATM and will have to consider selling bitcoin to buy back shares."