STRC, the preferred stock tied to Strategy, is a Ponzi-like structure that will be Strategy's downfall unless it is shut down. The structural problem cannot be fixed while it exists, and management's stubbornness risks a massive loss of confidence in Strategy. If Strategy sells bitcoin to cope, lower bitcoin prices could follow in a vicious cycle. As long as STRC exists, believers in bitcoin should just own bitcoin. x.com  x.com  x.com 

Strategy's latest share sale sets up another bitcoin bid but keeps diluting MSTR holders until buying restarts. It sold 18.26M MSTR shares for about $2B: $136M to buy back STRC, $300M to the dividend reserve and $1.59B to a flexible cash pool that can buy bitcoin. Its BTC sale near $64K repaired the financing machine after STRC fell below $100; it was not a bearish call. Meanwhile more shares chase the same 840,447 BTC. Watch STRC reclaiming $100 (now $97) and where the $1.59B goes. x.com 

Strategy is attracting some of the world's largest fund managers because they want Bitcoin exposure. Their buying supports the bullish case for MSTR as a listed vehicle for institutional Bitcoin demand. x.com 

Strategy's STRC preferred was never as safe as a money market fund, and if both STRC and MSTR share dilution fail, the only way left to pay dividends is selling bitcoin. Believing STRC would stay at par forever while paying a junk-like 12% was financial illiteracy; per @betirement, it has now fallen below $90. Strategy says its bitcoin reserve gives it 32 years of dividend coverage. x.com  x.com 

Strategy is turning to selling bitcoin to rescue its troubled STRC preferred program, which points toward bankruptcy. It launched a Bitcoin Monetization Program that lets it sell BTC to fund operations, per Watcher.Guru, and the news sent the preferred up 10%, meaning it would sell bitcoin low to support STRC high. x.com 

Strategy is early below 1.5x its bitcoin net asset value, and the crowded short-Strategy, long-bitcoin trade is about to blow up, setting off short covering. Upcoming catalysts include STRC trading back at par, an Iran resolution with no rate hikes, and a momentum rotation into crypto after its underperformance relative to overpriced and crowded AI and software stocks. x.com 

Strategy is a disclosed Ponzi that is now unwinding, with much more downside ahead and an eventual path to zero. As bitcoin-treasury hype fades, raising money to keep the scheme going gets harder, while interest costs keep accumulating on instruments such as its STRC preferred. That liquidity drain is what will take Strategy down. x.com 

Strategy's structure forces it to sell bitcoin into its own drawdown. It needs dollars for preferred obligations and can either sell equity or sell bitcoin. With MSTR down 83% from its high, issuing stock costs far more shares, and since the stock falls with bitcoin, the equity route gets expensive exactly when bitcoin is weak. This week it did both, selling 1,638 BTC at $63,957 against a $75,419 cost basis and issuing $290.6M of stock. x.com 

Bitcoin and Strategy offer an unparalleled and underappreciated setup now that the issue around Strategy's STRC preferred is largely resolved. x.com 

Strategy may be forced to sell bitcoin because its STRC preferred has hit a record low of $83, well under its $100 par. That discount says the dividend is too low, and raising it means more cash out the door. Strategy has funded that cash by selling MSTR shares, but the premium that made dilution easy is almost gone, leaving bitcoin sales as the remaining option. x.com