Foreign media comments suggest that Strategy has expanded rapidly over the past few years, relying on a cycle of “equity over holding bitcoin value - financing - continuing to buy money”, becoming one of the world's largest business-holders of bitcoin. However, following the fall of the Bitcoin of $60,000, the model began to experience reverse pressure, and market attention shifted from expansional capacity to financing costs and cash coverage.

Financing tightening when premiums disappear

According to the article, the key to this model is the willingness of the market to value Strategy above its net bitcoin value. As long as there is a premium on equities, companies can issue new or priority shares to raise funds and then invest in bitcoin, further raising the corresponding amount of bitcoin per share. Over the past few years, the increase in bitcoin and the valuation premium have reinforced each other, making the company once a high-flexible bitcoin exposure in the United States stock market.

According to the article, at the end of June, bitcoin fell rapidly to about $59,000, with the subsequent sharp fall in Strategy ' s share price and the value of the assets it held in bitcoin. For such models, this is not an ordinary fluctuation, but a direct weakening of the financing logic.

  • Bitcoin went down for $60,000.
  • Strategy holds more than 847,000 bitcoins
  • The average storage cost is about $76,000.

Priority stock tool pressure

When the normal share is lower than the net bitcoin value, the new share is thin rather than increasing the value of each bitcoin. At the same time, if priority shares are long-term below nominal value transactions, new financing will require higher costs. In other words, the two sources of financing on which the company would have relied had become tight at the same time.

According to external sources, market concerns stem not only from book losses but also from ongoing cash obligations. The article mentions that the corresponding annual dividends obligations of the Strategy priority stock system have risen to approximately $1.2 billion, while cash reserves have decreased significantly compared to earlier periods and the period of dividends coverage has been reduced from many years to about 14 months.

32 bitcoin sales concern

It is also mentioned that the key financing instruments STRC currently have a clear transaction price of less than $100, close to $82. For companies that rely on capital markets for sustained financing, this means that it will be more expensive and difficult to continue to finance through similar instruments.

Of even greater concern was the company's long-standing insistence on “no-sale” narratives, but the article stated that 32 bitcoins had been sold to pay dividends. Although small, the market is seen as a signal that bitcoin holding is no longer completely untouchable when financing is limited.

2027 is the key point.

According to the article, there are two views in the market at present. According to one view, if Bitcoin prices continued to fall below warehouse costs, and company valuations were chronically short of premiums, Strategy ' s expanding wheel would be difficult to recover and might even be forced to rely more on asset sales or high-cost financing.

According to another view, the company was only in a stress phase and had not lost the space for adjustment. In support of this view, it was argued that the old model could be re-functioning as long as the prices of bitcoin were up and stock and financing instruments were improved. The article considers the maturity of some $1 billion in 2027 as an important point in time.

Additional information:The article also notes that the Strategy model has been imitated by a number of “bitcoin treasury companies”, so that the pressure is not only related to single companies, but the market is also seen as a pressure test for the whole business model.