MicroStrategy Abandons BTC Focus, Considers Selling $5 Billion
The company formerly known as MicroStrategy has made a significant shift in its strategy regarding Bitcoin. After acquiring over 843,775 units of BTC since 2024, the firm's current stash is now worth billions of dollars. In recent earnings calls, CEO Phong Le mentioned that the company might sell up to $5 billion in BTC, which is higher than their previous target of $1.25 billion.
Instead of acquiring more BTC, Strategy has focused on rebuilding its USD reserve through fundraising activities and increasing cash reserves. The firm's new primary corporate objective is for STRC (its preferred stock) to trade at $99-$100 over time, which is a significant departure from its previous focus on increasing Bitcoin per share.
Analysts like CryptoKaleo have criticized the company's shift in strategy, arguing that it has abandoned its BTC-focused vision. They note that Strategy now operates more like a credit company, with an 'atrocious' credit rating and a focus on repurchasing stock rather than accumulating BTC.