"The share price of Saylor's firm Strategy, which owns over 3% of the world's Bitcoin, is down dramatically. Worse, the company faces twin headwinds in the form of a bearish crypto market and an impending rule change that will likely trigger a mass sell-off of its stock. On Monday, the company announced a $1.2 billion reserve fund to meet impending interest and dividend obligations, but that did little to prop up its shares."
"Saylor may escape from this bind, as he has in the past, but this time the stakes are higher. In recent years, Strategy's purchases have helped fuel crypto's record rise, and turned Saylor into Bitcoin's leading evangelist. This means any move by Strategy to dump part of its holdings-something its CEO hinted last week could happen-would not only depress prices, but could spark a crisis of confidence and a broader sell-off."
Strategy owns over 3% of global Bitcoin and faces a sharply falling share price amid a bearish crypto market and an impending rule change likely to force large sales. The company announced a $1.2 billion reserve fund to meet interest and dividend obligations, but the measure failed to stabilize shares. Critics describe Strategy's model of selling stock to buy Bitcoin as unsustainable or a Ponzi-like scheme, while defenders call critics knee-jerk detractors. A forced or voluntary dump of holdings could depress Bitcoin prices, spark a wider sell-off, and threaten numerous firms that copied Strategy's model.
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