Bitcoin News
By Bruce Buterin
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Phong Le Defends Issuances Despite Dilution. Phong Le, the CEO, spoke about the new share issuances.
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No Business Acquisitions, No Diversification. Strategy is not going to acquire profitable companies to diversify its revenue.
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Strategy holds $4.8 billion in cash. Michael Saylor says it's there to buy Bitcoin, repurchase shares, or reduce debt. No fixed plan.
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The MSTR stock has taken a severe hit. Down 38% since January, down 73% over twelve months. That's significant.
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No immediate buyback of MSTR shares is planned.
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Phong Le, the CEO, spoke about the new share issuances. His stance: it can work for shareholders when the price exceeds the value of the associated assets.
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On STRC, the preferred shares, Le was also direct. Maintaining liquidity to cover STRC dividends is a priority. The drop in STRC has weighed on cash decisions.
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What Saylor says about selling Bitcoin is more nuanced. Not an emotional decision. The 200-week moving average serves as a reference.
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See also: The Fed Injects $17 Billion and Bitcoin Traders Aim for $65,000
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And that's where Strategy's strategy — the name is almost ironic — boils down to something quite simple: stay pure, stay Bitcoin, stay flexible. The $4.
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See also: Bitcoin Futures Open Interest Tops Daily Volume, Stirring Volatility Fears Among Traders
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STRC follows a different logic than MSTR. Focused on generating income through dividends, with a target price around $100.
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It remains to be seen if the Bitcoin market gives them the conditions for it to work. Because all the flexibility in the world is useless if Bitcoin continues to slide.
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Saylor insists: the cash allows acting quickly when conditions change. Four options on the table — buy Bitcoin, repurchase MSTR, buy back preferred shares, reduce debt.
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Read also: Spot Bitcoin ETF Flows Show Institutional Positioning Strength
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