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
High yields boost buying, Japan's two-year government bond auction passes smoothly
Driven by attractive yields, capital has been flowing in, resulting in Wednesday's two-year Japanese government bond auction seeing demand stronger than the 12-month average.
"The Big Short" Burry’s star pupil warns: South Korean stock market appears to be a "capitalist paradise," but in reality hides a "value trap"
There are hidden traps behind low-priced Korean stocks: most of their value is often inaccessible to minority shareholders.
The $1,999 iPhone drives foldable screen market expansion! Counterpoint estimates that Apple (AAPL.US) iPhone Duo will sell 6 million units this year.
The market research firm Counterpoint Research stated that Apple is expected to sell about 6 million units of the iPhone Duo this year. This is the industry's first sales forecast for this new foldable device.
Omar Kanji joins Brevan Howard as Head of Digital Asset Business Growth Investment.
Crypto prices
More
