MARA Holdings (MARA) released their 4Q results this evening, but it's difficult to find an income statement, balance sheet, statement of cash flows, shares outstanding, etc. It doesn't look like they even filed a 10-K yet. What is going on here???
Michael Saylor has brainwashed MicroStrategy (MSTR) investors into believing their outstanding convertible notes are risk free and MARA Holdings (MARA) investors believe the same.
The conversion prices of these notes allow the debt holders to convert to shares in the event that the share price appreciates to the upside... however, if the share price of MSTR and/or MARA declines they are under no obligation to convert the notes. At the time of maturity, or even before maturity if undisclosed conditions take place (like Bitcoin declining below a certain price), they can demand to be repaid cash in full. MSTR's software business is very small, and MARA's Bitcoin mining operations aren't consistently profitable. MARA reported a 4Q profit but without a 10-K being filed they are making it difficult (on purpose) for investors to see if all of the profit came from their increasingly less liquid Bitcoin being revalued higher.
At some point, all Bitcoin held by MSTR and MARA will be sold to pay off the convertible note holders. The remaining balance after all of their Bitcoin gets sold will most likely be paid in severely dilutive stock issuances at share prices 95% below today's closing prices.
Although their "Bitcoin yield" calculations take into account assumed dilution if convertible note holders convert into shares, these conversion prices are typically at 40% premiums above the share price when the notes are issued, and conversion can only be forced by the company if the price per share is 30% above those conversion prices.
MSTR and MARA refuse to publicly disclose the full contractual terms of these convertible debt instruments.
MARA included the following disclaimer in their earnings presentation published this evening, "BTC Yield represents the percentage change period-to-period of the ratio between the Company’s bitcoin holdings and its Assumed Fully Diluted Shares Outstanding. Assumed Fully Diluted Shares Outstanding refers to the aggregate of the Company’s actual shares of common stock outstanding as of the end of each period plus all additional shares that would result from the assumed conversion of all outstanding convertible notes, exercise of all outstanding warrants, and settlement of all outstanding restricted stock units and performance stock units. Assumed Fully Diluted Shares Outstanding is not calculated using the treasury method and does not take into account any vesting conditions (in the case of equity awards), the exercise price of any warrants or any contractual conditions limiting convertibility of convertible debt instruments."
We have discovered many companies using exactly the same disclaimer including Genius Group Limited (NYSE American: GNS) which recently announced that it achieved a "1,649% BTC Yield in Q4 2024".
Why buy gold mining/exploration stocks if you can get 1,649% BTC yield in a single quarter? See what's going on here!?
Michael Saylor is behind all of these companies doing exactly the same thing. Saylor has turned Bitcoin into a Ponzi that goes way beyond Tether printing USDT out of thin air! There are multiple layers of Bitcoin Ponzinomics all built on top of one another... and this is nothing compared to the hundreds of social media influencers conducting Solana meme coin rug pulls on a daily basis stealing millions of dollars from their followers!
Sol Strategies (CSE: HODL) declined by 7.78% today to $2.37 per share and has already collapsed by 42.62% since NIA's warning last week at $4.13 per share!
Jeff Bezos cares more about freedom and liberty than creepy Michael Saylor. Bezos tweeted on X last night in regard to the Washington Post, "I’m writing to let you know about a change coming to our opinion pages. We are going to be writing every day in support and defense of two pillars: personal liberties and free markets."
When companies issue debt to buy Bitcoin or when people buy Bitcoin through an ETF, they are removing Bitcoin from the market that could otherwise be used as a digital currency in decentralized transactions. It is these decentralized transactions that give Bitcoin value! If all Bitcoin is held by "investors" and no longer gets used as a currency... it has no value! This isn't what Satoshi envisioned!
See why President Trump and Elon Musk are pivoting to gold?
Preparing Americans for Hyperinflation
