[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]  Josh Man [@JoshMandell6](/creator/twitter/JoshMandell6) on x 141K followers Created: 2025-05-03 10:36:56 UTC My opinion is that he is playing a shell game with the balance sheet in order to repair a credit rating that is properly impaired. When he brags about paying off the Silvergate loan at cents on the dollar to buy more Bitcoin, a rating analyst cringes. Normally, one could only settle debt for less than par if you were insolvent and/or in bankruptcy, in which case the equity is worthless. Bond holders and other lenders will not soon forget what took place there. In the event of insolvency or bankruptcy, debt holders get paid first and would only receive partial payment if every single share of preferred and common stock were deemed worthless. The fact that they accepted partial payment indicates that they concluded there was actually a lot less value in the BTC at "bankruptcy liquidation" prices. When we got down to the $XX margin call, they must have realized that the market would spiral from there if @Saylor had to start selling shares. This is one big problem I have with BTC per share. The conservative calculation would be to first assume that you are only able to get those shares in the event of bankruptcy, then calculate a conservative bankruptcy price per share and apply that to the bonds first, and then the Preferred. After doing that, you won't have as many BTC left over for Common Shares as everyone assumes today. XXXXXXX engagements  **Related Topics** [farming](/topic/farming) [if you](/topic/if-you) [par](/topic/par) [debt](/topic/debt) [money](/topic/money) [default risk](/topic/default-risk) [balance sheet](/topic/balance-sheet) [shell](/topic/shell) [Post Link](https://x.com/JoshMandell6/status/1918615753902653848)
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Josh Man @JoshMandell6 on x 141K followers
Created: 2025-05-03 10:36:56 UTC
My opinion is that he is playing a shell game with the balance sheet in order to repair a credit rating that is properly impaired. When he brags about paying off the Silvergate loan at cents on the dollar to buy more Bitcoin, a rating analyst cringes. Normally, one could only settle debt for less than par if you were insolvent and/or in bankruptcy, in which case the equity is worthless. Bond holders and other lenders will not soon forget what took place there.
In the event of insolvency or bankruptcy, debt holders get paid first and would only receive partial payment if every single share of preferred and common stock were deemed worthless. The fact that they accepted partial payment indicates that they concluded there was actually a lot less value in the BTC at "bankruptcy liquidation" prices. When we got down to the $XX margin call, they must have realized that the market would spiral from there if @Saylor had to start selling shares.
This is one big problem I have with BTC per share. The conservative calculation would be to first assume that you are only able to get those shares in the event of bankruptcy, then calculate a conservative bankruptcy price per share and apply that to the bonds first, and then the Preferred. After doing that, you won't have as many BTC left over for Common Shares as everyone assumes today.
XXXXXXX engagements
Related Topics farming if you par debt money default risk balance sheet shell