Has Strategy’s capital overhaul put an end to ‘death spiral’ fears?
Strategy’s latest plan includes MSTR and STRC buybacks, expanded cash reserves and even potential Bitcoin sales. Will it be enough to defuse the overheated “death spiral” fears?
With Bitcoin plunging below $60,000 and Strategy’s share price down by more than 70% from the high, some crypto investors are questioning if Strategy could become this cycle’s Terra/LUNA — a highly leveraged bet on crypto market structure that explodes under stress.
The company’s response? A new capital framework released on Monday aimed at addressing investors’ fears.
The package includes up to $1 billion in buybacks for MSTR, up to $1 billion in buybacks for STRC and related securities, an increase in STRC’s dividend to roughly 12%, and a cash buffer expansion to $2.55 billion.
