Strategy · Bitcoin · Michael Saylor · Cointelegraph
Some argue that Strategy’s entire fundraising and equity model is inherently reflexive
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Ripple CEO Brad Garlinghouse made that exact point on CNBC this week.
Key facts
- The package includes up to $1 billion in buybacks for MSTR, up to $1 billion in buybacks for STRC and related securities, an increase in STRC’s dividend to roughly 12%, and a cash buffer expansion
- And while failure of STRC to maintain its "peg" of $100 has caused much consternation, STRC isn't pegged to $100 in the way a stablecoin is pegged to the value of $1
- But Schiff pointed out that the current market cap of MSTR is $30 billion, while the current value of its Bitcoin is $50 billion
- With Bitcoin plunging below $60,000 and Strategy’s share price down by more than 70% from the high, some crypto investors are questioning if Strategy could become this cycle’s Terra/LUNA, a highly
Summary
Strategy's latest plan includes MSTR and STRC buybacks, expanded cash reserves and even potential Bitcoin sales. With Bitcoin plunging below $60,000 and Strategy’s share price down by more than 70% from the high, some crypto investors are questioning if Strategy could become this cycle’s Terra/LUNA, a highly leveraged bet on crypto market structure that explodes under stress. The package includes up to $1 billion in buybacks for MSTR, up to $1 billion in buybacks for STRC and related securities, an increase in STRC’s dividend to roughly 12%, and a cash buffer expansion to $2.55 billion. Of particular note for a company famed for its maximalist approach to Bitcoin, Strategy also said it may sell up to $1.25 billion in BTC holdings if required to meet dividend or debt obligations. Markets responded positively to the news, with both STRC and MSTR shares rallying more than 12% in after-hours trading.