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Bitcoin Updates Today: Bitcoin’s Decline Fuels Ongoing Discussion About the Ambitious Fundraising Approach

Bitcoin Updates Today: Bitcoin’s Decline Fuels Ongoing Discussion About the Ambitious Fundraising Approach

Bitget-RWA2025/11/10 17:12
By:Bitget-RWA

- Strategy Inc. raised €620M via upsized 10% dividend-bearing preferred stock to fund Bitcoin purchases amid market declines. - The offering expanded from €350M due to strong demand, with proceeds allocated to Bitcoin acquisitions and operations. - Short-seller Chanos closed MSTR short position as mNAV ratio dropped to 1.23x, signaling reduced valuation premium. - Despite Bitcoin trading below $100K and MSTR's 27% stock decline, Saylor maintains bullish stance with 641,205 BTC holdings. - Analysts debate s

Strategy Inc., a Bitcoin-centric firm headed by billionaire Michael Saylor, has secured €620 million ($715 million) by expanding its 10% Series A Perpetual Stream Preferred Stock (STRE) offering, demonstrating ongoing dedication to

as a primary reserve asset even as the broader market faces declines . The company sold 7.75 million shares at €80 each, raising the initial target from €350 million due to robust investor interest. The funds will be used to increase Bitcoin holdings and support business operations, further cementing Strategy’s status as a leading corporate Bitcoin holder .

Bitcoin Updates Today: Bitcoin’s Decline Fuels Ongoing Discussion About the Ambitious Fundraising Approach image 0
The preferred shares offer a 10% yearly dividend, distributed in cash every quarter, with interest compounding if payments are missed, up to a maximum of 18% per year . This setup is designed to appeal to institutional investors looking for consistent returns, while aligning with Strategy’s long-term Bitcoin . Still, this move comes as Bitcoin trades below $100,000 and Strategy’s shares (MSTR) have dropped more than 27% in the last month, raising concerns about the viability of its bold crypto strategy .

Recent market shifts have put Strategy’s tactics under a microscope. James Chanos, the well-known short seller and Kynikos Associates founder, recently exited his short position on

, pointing to a narrowing gap between the company’s market cap and its Bitcoin assets. The market Net Asset Value (mNAV) ratio—which compares MSTR’s enterprise value to its Bitcoin reserves—fell to 1.23x from 2.0x in July, shrinking the implied premium from $70 billion to $15 billion . Chanos said the trade had “mostly run its course,” while Pierre Rochard, CEO of Bitcoin Bond Company, suggested the downturn for Bitcoin treasury companies could be ending .

On the other hand, critics such as Bitcoin skeptic Peter Schiff argue that the shrinking premium could mean more downside risk, with possible discounts if market conditions worsen

. Meanwhile, Strategy’s stock reached its lowest point in seven months during pre-market trading after the preferred stock pricing was revealed, as Bitcoin’s dip below $100,000 dampened investor confidence .

Despite ongoing turbulence, Saylor remains optimistic. The company has kept adding to its Bitcoin reserves, though at a slower rate, and has recently hinted at additional purchases through social media updates linked to its Bitcoin tracker

. Strategy’s treasury now holds 641,205 BTC, worth over $64 billion, with unrealized gains of 43% .

The preferred stock sale highlights Strategy’s dual role as both a tech-financial innovator and a proxy for Bitcoin. While the high-yield structure provides some downside protection for investors, the company’s fate remains closely linked to cryptocurrency price movements. With concerns about a U.S. government shutdown easing and renewed optimism in the macroeconomic outlook, some analysts believe Bitcoin treasury stocks could stabilize—a sector that has lost over $100 billion in value this year

.

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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.

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