The latest disclosure by Strategy raised market concerns. According to the company, the board of directors has approved a Bitcoin liquidation plan that allows the company to sell part of the BTC, as needed, to replenish the United States dollar reserve, pay priority dividends and interest expenses, and buy back part of the securities.
The plan doesn't mean it's sold right away.
The bulletin indicated that the plan did not require the company to sell bitcoin, nor did it require that the money be sold to cover the related expenses or to complete the repurchase. The scheme does not have a fixed maturity date, and the company can adjust, suspend or terminate at any time.
According to the data quoted, Strategy held 847,363 BTCs as at 22 June. If the company eventually raised $1.25 billion through the sale of bitcoin, the size of the sale, at current prices, would be approximately 20,800 BTCs, representing approximately 2.5 per cent of its holdings.
- Warehousing size: 847,363 BTC
- Potential funding: maximum $1.25 billion
- Estimated sales: about 20,800 BTCs
Use of funds for three arrangements
The company disclosed that the liquidation plan had three main purposes: first, to raise up to $1.25 billion for the United States dollar reserve; second, to finance the priority dividends and interest expenditure when the relevant amounts fell due or to replenish the United States dollar reserve after payment; and third, to provide additional funds for the buy-back of digital credit securities or category A general shares.
This means that Strategy has provided for greater flexibility in its capital structure and fund movements, but has not committed in the bulletin to specific timing, price bands or implementation tempo.
Community discussion turned to Billy Markus.
Soon after the news came out, there was an extended discussion in the encryption community. Billy Markus, a co-founder of Dogecoin, also forwards information on X and responds.
Then, again, the user mentioned Markus selling all the DOGE holdouts in 2015. According to the information in the paper, he had cleared his encrypted assets after becoming unemployed and had set aside approximately $10,000 to cover rent and basic living expenses.
In the face of such old events, Markus has maintained a consistent and relaxed attitude and responded to the resulting adjustments in a face-to-face manner. This interaction has also allowed the discussion that originally revolved around Strategy's funding arrangements to spread further to a re-examination of the topic of “early selling” by the encrypted community.
Additional information:The community discussions described in the paper are mainly the result of social platform interactions, and the central new fact remains that Strategy has disclosed a Bitcoin liquidity plan, but that arrangement does not currently constitute a mandatory sale commitment.