Strategy’s latest move has brought the market back to its Bitcoin Treasury strategy. The company revealed that Executive Chairman Michael Saylor had suggested again that Strategy might soon be buying a new round of bitcoin.
Saylor's back in position. Figure
Saylor released Strategy Bitcoin holdout tracking on Sunday, with its consistent “a few more points” expression. The market usually regards such communications as a pre-positioned signal that companies will continue to hold bitcoin.
This means that, despite the recent pressure on the financing instrument, there has been no clear break in the pace of the cumulative purchase of Bitcoin by Strategy.
The sharp drop in the price of STRC is a cause for concern.
At the heart of the controversy, Strategy recently launched STRC. The tool is a variable interest rate, with a nominal value of $100 and an annualized dividends rate of 11.5 per cent.
However, at a time in recent days, the STRC collapsed at $89, rapidly becoming the focus of the encryption market. After a marked price deviation from the face of the paper, the outside world began to question the stability of the instrument and its impact on Strategy ' s follow-up financing capacity.
According to reports, Eric Balchunas, a senior ETF analyst in Bloomberg, argued that Strategy should abandon the tool as a continuing burden.
Market focus on money-buying sources
Following the increased volatility of the STRC, the market began to look for sources of funding for the subsequent purchase of Bitcoin by Strategy. According to some analysts, the expectation that the company might need to ease the pressure on the STRC holder by adjusting the Bitcoin holdout also slows BTC prices.
The article also mentions that the purchase of bitcoin by Strategy through STRC was allegedly suspended in June. This is also of particular interest to Saylor, who once again released the buy-in signal.
Additional information:The original text did not disclose the specific size, timing or financial channels of the next Bitcoin purchase, and the current market focus is mainly on whether companies will adjust their financing in the wake of STRC fluctuations.