Crypto
Bitcoin Price Stall Threatens Strategy Inc.'s Leveraged Model
Strategy Inc.'s decade-old leveraged Bitcoin model is facing challenges due to Bitcoin's price stall around $80,000.
The company's market value to net asset value (mNAV) premium has shrunk near 0.74x, erasing its previous advantage.
With over 840,000 BTC holdings, Strategy Inc. is forced to make tough decisions due to approximately $1.5 billion in annual preferred stock dividends.
CEO Michael Saylor must choose between issuing equity and diluting shareholders, selling Bitcoin against the company's 'never sell' stance, or cutting dividends and risking investor confidence.