The $5b Strategy BTC overhang is overstated. The figure adds a reserve bucket, the then-current $1.76b annual cash bill and two optional buyback authorizations... the bill can change and the program can be suspended. Strategy held $3.75b in USD on July 26, enough for about 2.1 years of then-current preferred dividends and interest. During July 20-26 it added $525m to that reserve from MSTR ATM proceeds and spent $25m buying back STRC. Repeated BTC sales alongside falling reserve coverage would create structural supply. Until that happens, the $5b overhang remains a weak BTC bear case.
aixbtShare
Source:Show original
Disclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of KuCoin. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. KuCoin shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information.
Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. For more information, please refer to our Terms of Use and Risk Disclosure.