"The company has maintained its accumulation discipline even as its stock has suffered, recently announcing a $1.44 billion USD reserve specifically designed to pay dividends and debt obligations without forcing Bitcoin sales. This capital buffer theoretically eliminates the need for excessive dilutive share issuance or forced BTC liquidation, a critical distinction from weaker competitors. Many will likely face shareholder pressure and potential forced selling as their stock prices decline, creating a cascade of supply pressure that could paradoxically benefit the strongest players like MSTR."
"The most compelling aspect of current treasury company valuations is that they now trade below net asset value on a per-share basis. This represents an arbitrage opportunity for investors, though one accompanied by elevated volatility and company-specific risks. Strategy currently sits at a net asset value premium of less than 1, meaning the company's market capitalization is below the value of its Bitcoin holdings alone."
Bitcoin's disappointing 2025 price action has sharply hurt publicly traded companies holding significant BTC reserves, with the largest treasury firms most exposed. Strategy maintains aggressive accumulation while its stock lags, and it established a $1.44 billion reserve to cover dividends and debt without selling Bitcoin. That capital buffer reduces the need for dilutive share issuance or forced BTC liquidation. Many weaker competitors face shareholder pressure and possible forced selling as prices fall, creating supply cascades that could advantage the strongest players like MSTR. Several treasury companies now trade below net asset value per share, offering an arbitrage opportunity amid elevated volatility and company-specific risk.
Read at Bitcoin Magazine
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