The biggest fraud of "BTC per share" is that shareholders are very last in line to have a claim on MSTR's BTC
The pecking order goes:
1. Secured Creditors (first in line)
2. Administrative Expenses (second)
3. Unsecured Creditors (third)
4. Common Shareholders (last in line)— Pledditor (@Pledditor) May 19, 2025
They told you that buying shares of MicroStrategy was like owning Bitcoin. The story was seductive. Slide decks, interviews, and financial media echoed the claim that each share represented a slice of the Bitcoin treasure locked inside the company’s vault. Analysts repeated the “BTC per share” mantra as if it were gospel. But it was all smoke. There is no vault key for you. There never was.
Here is the brutal truth. If MicroStrategy implodes, the line to grab whatever is left is long and brutal. You are not at the front. You are not even in the middle. You are dead last.
First come the secured creditors. These are not people hoping for a rebound in share price. These are institutions with collateral agreements in hand. Their claims are locked in, legally binding, and fully enforceable. If any Bitcoin has been pledged, it is theirs. Not yours. They will move quickly and take everything they are owed.
Next come the administrative costs. Bankruptcy is not a yard sale. It is a bloody, expensive legal process. Lawyers will be paid. Restructuring firms will be paid. Court-appointed trustees and consultants will eat well before a single dollar is left for the hopeful shareholder. You pay for the process even as it guts you.
After that, the unsecured creditors arrive. These are service providers, vendors, unpaid partners, and anyone else who extended trust or credit. They hold no collateral, but their claims still come before yours. They stand on your back to reach whatever scraps remain.
Then, and only then, do the common shareholders get a turn. If there is anything left. Usually there is not. If you hold MSTR stock thinking you have a claim to the company’s Bitcoin, understand this now. You have a claim to nothing. You are entitled to leftovers, if there are any. And in most bankruptcies, there are none.
MicroStrategy’s stash of over 200,000 Bitcoin has mesmerized the market. Its stock has often traded like a leveraged Bitcoin ETF. But that is illusion, not reality. Reality includes $2.2 billion in convertible notes. Reality includes layers of debt that will swallow assets whole before you even hear the word distribution.
That seductive ratio — BTC per share — is a gimmick. A marketing fantasy. It gives the illusion of ownership without granting a single right to the actual asset. You cannot withdraw the Bitcoin. You cannot claim it. You cannot touch it.
If the company goes down, your shares do not convert into coins. They convert into pain. Legal pain. Financial pain. Emotional pain. You will be staring at court documents while the creditors walk out the side door with the coins.
This is how the real world works. Corporations are not trustless systems. They are legal constructs with built-in hierarchies. If you are holding shares thinking you are somehow immune to that structure, you are not just misinformed. You are the target.
The insiders know how the game is played. The bondholders wrote the rules. The only people who believe in “BTC per share” are retail investors who have not yet read the fine print.
You were sold the idea that you held Bitcoin in disguise. But when the music stops, you will not find a throne. You will find a broom. And they will ask you to sweep.
Disclaimer: Not financial advice