Bitcoin News
By Bruce Buterin
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The Bond Buyback Math. Zero-coupon. Worth sitting with that for a second. Strategy repurchased debt that paid no interest.
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Dilution Risk Piles On Top. So how does Strategy plan to rebuild the reserve? More stock sales.
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Strategy — the company formerly known as MicroStrategy — just burned through most of its USD Reserve. Between May 11 and May 25, 2026, it spent $1.
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What makes this jarring is where that money was supposed to go. When Strategy built the USD Reserve, management framed it as a protective cushion for preferred shareholders — a…
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But the preferred shareholders didn't sign up for a debt-reduction program. They were told the reserve existed for them. And now it's mostly gone.
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Strategy's annual obligations for its dividend-paying preferred shares total over $1.7 billion. With $871 million left in the reserve, the math is pretty uncomfortable.
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So how does Strategy plan to rebuild the reserve? More stock sales. Specifically, the company plans to issue additional common and preferred shares to replenish the depleted cash.
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MSTR has dropped 58% over the past year. It closed at $154.20. And now shareholders are looking at another round of dilution to fund a reserve that was just raided for a purpose…
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Related: DDC Enterprise Buys 131 Bitcoin in a Week Without Issuing New Shares
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The company's Bitcoin strategy hasn't changed in direction, but the financial mechanics around it keep shifting in ways that leave shareholders absorbing the cost.
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There's a broader tension here that's probably worth naming. Strategy built its identity around aggressive Bitcoin accumulation, and the USD Reserve was sold as proof it could do…
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Kang's framing — that the move was good for equity and credit — may be accurate from a balance-sheet standpoint. But investor confidence doesn't run purely on balance-sheet logic.
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Common shareholders have watched dilution happen repeatedly without a corresponding jump in Bitcoin holdings to justify it.
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See also: Crypto Card Monthly Volume Hits $7.8 Billion, Up 230% Since 2025
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Strategy's management faces the challenge of rebuilding the reserve while managing shareholder expectations on two fronts simultaneously — preferred holders who want their…
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