“Common holders got stretched,” wrote well-followed @Snz_BTC on X, who has long been skeptical of the company. “Diluting MSTR holders to support STRC is the choice.”
“This buys them time,” he continued. “If BTC doesn’t meaningfully recover soon, MSTR will sink more and STRC won’t recover to par and the company will be saddled with an even more dividend commitment.”
“This move by MSTR definitely buys them some time, but as potential sellers for liquidity,” wrote another longtime skeptic, Quoth the Raven. “Strategy hasn’t escaped the importance of bitcoin’s price – it has arguably become even more dependent on it. I expect the market to realize this soon too.”
Not everyone is negative.
“This is very measured, and it’s great to see,” wrote special/distressed situations specialist Thomas Braziel. “This is a win for Bitcoin, a win for the common shareholders, and a win for the preferred holders,” he continued. “If bitcoin can remain around $60,000 while Strategy sells up to $1.25 billion of BTC, it would be a huge validation of the Strategy model as a bitcoin treasury company. It would also strengthen the investment case for the other Digital Asset Treasury companies.”
Bottom line: Saylor and team are trying to run out the clock on the bitcoin bear market, buying time with relatively small sales of their bitcoin stack at what may or may not be the bottom. A quick bounce higher in coming months will have them again looking like geniuses. Whether markets cooperate remains to be seen.
For now, MSTR and STRC are posting roughly 5% gains — relatively small advances given their plunge in recent days. Bitcoin is trading near session lows at $59,100.
