Source: Fortune.com
Summary
Strategy, a Bitcoin-heavy company, is shifting its strategy to alleviate concerns about its financial health. The company may sell up to $1.25 billion in Bitcoin to boost its cash reserves and fund stock buybacks. This move is a reversal of its previous stance on never selling Bitcoin. Strategy’s stock has fallen 44% over the past year, and its preferred share, STRC, has also declined. The company is making changes to its cash reserves and dividend policy.
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The numbers tell one story.
Strategy’s about-face on Bitcoin sales comes as its stock and preferred share, STRC, struggle. Michael Saylor, the company’s executive chairman, has changed his tune on selling Bitcoin. The company’s plan to sell up to $1.25 billion in Bitcoin is a significant shift. Strategy’s commitment to Bitcoin as its primary Treasury reserve asset remains, but the company is adapting to market pressures.
Strategy’s move to sell Bitcoin is a sign that even the most ardent cryptocurrency bulls are feeling the heat.
