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'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 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 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 

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 

Strategy offers prime risk/reward here unless Bitcoin keeps moving deeply lower. Saylor affirmed the company can pay its dividend for over two years and will prioritize always holding 12 months of dividend cash, alongside a new Digital Credit Capital Framework. Last week's FUD over Saylor, Strategy and its STRC preferred produced a strong candle below the prior low into a key demand area from the previous cycle, yet the stock kept its weekly bullish divergence. x.com 

Strategy is no longer just a levered bitcoin proxy but a credit engine that must dilute common equity and sell bitcoin to keep its capital structure afloat. It sold bitcoin below its average cost basis to buy back STRC preferred shares, breaking its "never sell" thesis. It also raised $653M through at-the-market common stock sales toward a $4.65B cash reserve, prioritizing preferred dividend coverage over buying bitcoin, which exposes the rising cost of its preferred stack. x.com 

Strategy is a scam, though a brilliantly executed one, built on bitcoin, which is itself a liquidity decoy. Michael Saylor sold about $496M of MSTR under an equity compensation plan ending in April 2024, around the SEC's Grayscale approval, effectively dumping bitcoin on the masses near $60K. He does not care about "never sell"; he ran a pump and dump in the 1998-2000 bubble and was fined for accounting fraud, but this time is fully legally covered. x.com  x.com  x.com  x.com  x.com  x.com 

Strategy might be undervalued because it holds far more Bitcoin than the first time its stock traded at the same price. At $140.51 today, it holds 848,517 BTC, versus 193,000 BTC the first time shares reached $140.51. x.com  x.com 

Strategy is now selling Bitcoin at a loss to manage liquidity, and has signaled far larger sales may follow. Its latest 8-K shows 1,638 BTC sold at an average $63,957, below its $75,419 cost, raising $105M, split between preferred dividends and STRC buybacks. When the 12% STRC trades well below par, buying it back beats holding marginal BTC. On its earnings call Strategy said it could sell up to about $5B of BTC, four times its $1.25B authorization, while Michael Saylor's posts skip the sales. … Show more