Singapore's encryption trading agency QCP Capital states that bitcoin does not necessarily benefit from synchronization, despite the agreement between the United States and Iran that led to a recovery in overall risk. According to the Agency, the market is still concerned about the continuing pressure that Strategy may have on sales to pay the preferred dividends, a factor or to suppress BTC short-line performance.

The stress of the dividends is the focus.

QCP noted that Strategy was currently used for an inadequate buffer to cover dividends payments and that cash could support it for approximately 7.5 months. If the terms of the follow-up financing do not improve, the company may need to continue to dispose of part of the bitcoin hold to meet the related payment obligations.

These dividends obligations are mainly related to their preferred equity financing instruments, including Strech (code STRC). Such instruments had previously been an important channel for Strategy to raise funds and continue to buy bitcoin, but the recent weakening of prices had started to raise market concerns about financing costs.

  • STRC most recently received $89
  • Investors bought at $100 last month lost about 11%.
  • At current prices, the return for new buyers is about 12.92 per cent.

QCP considered that if Strategy further increases its rate of return to attract buyouts, its financing costs would continue to rise; if not, the related securities prices might continue to be under pressure. In both cases, the market's interest in its follow-up financing and holding arrangements has increased.

The company is responding to unsettled doubts.

In the face of market challenges, Strategy recently stated that, at the current price of bitcoin hold, the company had 32 years of cover capacity for dividends payments in an attempt to alleviate external concerns about solvency.

However, this statement does not completely dispel doubts. Some market participants argue that if companies actually start selling more bitcoin in the future, the holding value itself will shrink as prices fall, and so will the so-called coverage capacity. In other words, the length of coverage is based on the premise of price stability in bitcoin.

The view was also expressed that the response reinforced the market ' s concern that Strategy might be in the seller ' s position for a long time. Because, once dividends payments and financing arrangements continue to rely on holding value to support them, any future reduction by the company may be interpreted in a market magnification.

Prevent the fall of options funds

QCP also mentioned that the previous round of bitcoin was not driven solely by Strategy. The Fed maintains its hawk stance and is an important context for risk asset containment.

In terms of options data, large traders in the market have continued to be active in recent times in dealing with the downside risk of hedge bitcoin, with a focus on two implementation prices: $62,000 and $60,000. As the end of the second quarter draws near, the two positions have been more dynamic in terms of trade-offs, indicating that funds are still preparing for short-term fluctuations.

Overall, QCP believes that for the time being the market is not betting bitcoin will fall quickly by $60,000. However, if Strategy subsequently confirmed the re-sale of bitcoin, the current silo structure could be rapidly adjusted and the BTC rebound space could continue to be restricted.