Bitwise CIO: After the STRC incident, the importance of Strategy in the bitcoin market may decrease
According to ChainCatcher, Bitwise Chief Investment Officer Matt Hougan published an analysis on the volatility of Strategy (MSTR)’s STRC. He believes that Strategy currently holds approximately 49.6 billion USD worth of Bitcoin and 2.6 billion USD in cash, with assets far exceeding debt and preferred equity obligations, indicating no liquidation risk. The company’s newly launched digital credit capital framework allows it to flexibly sell Bitcoin to pay dividends according to market conditions, and it no longer forcibly maintains STRC’s 100 USD par value.
Hougan emphasized that in recent years, Strategy has been the world’s main Bitcoin buyer and a one-way source of demand, but this is likely no longer the case. Going forward, Strategy will flexibly buy or sell Bitcoin based on market conditions, but it will not become a large-scale seller (with mandatory annual selling amounts being limited). If Bitcoin price rebounds, it could still be a net buyer. Overall, Strategy will be less significant in the next cycle compared to the previous one.
He believes the volatility in STRC reflects the deleveraging process of excess leverage in the market, a typical feature seen at the end of bull markets. As these mismatched funds are squeezed out, the market bottom is forming, and a new bull market is expected to begin this autumn.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
BoE’s Greene says it is appropriate to proactively tighten our monetary policy stance
CoreWeave plans to issue at least $4 billion in investment-grade loans, falling nearly 6% after hours
According to Bloomberg, CoreWeave is seeking to refinance at least 4 billion USD through an investment-grade loan, led by Morgan Stanley and Mitsubishi UFJ, with a syndication roadshow expected to start as soon as next week. This financing continues the structure of using Nvidia chips and customer contracts as collateral, with the yield on the issuance anticipated to be around 7% to 7.5%, much lower than its junk bond yield. Following the news, CoreWeave's shares fell nearly 5.8% after hours.
Outperformed the S&P by 19.2 percentage points in one month: Berkshire (BRK.B) achieves its highest monthly relative advantage since 2010, second only to the 2008 financial crisis
As the AI trading boom subsides and technology stocks waver, one of the market’s oldest “safe havens” has once again proven its value. Berkshire Hathaway (BRK.B) has just recorded one of its most notable relative gains in over a decade.
Hyperliquid's annualized priority fee revenue reaches $108 million
Crypto prices
More
