Strategy Releases Investor Briefing: 840,000 BTC Bottomed Out, Digital Credit Strategy Becomes Growth Engine

Comparatively, Bitcoin reserve company Strategy (released the latest investor briefing, disclosing that as of August 9, the company held 840,447 bitcoins, accounting for about 4% of the total Bitcoin supply. The company said its core strategy is not only to hold Bitcoin, but also to build a “Digital Credit (Digital Credit)” platform through the capital market to increase Bitcoin holdings per share.

As of August 10, Strategy stock (MSTR) had a market capitalization of approximately $38.368 billion, corresponding to 1.06 times MNaV (market capitalization/net bitcoin value per share). The company pointed out that MSTR is not a Bitcoin ETF, and common shareholders do not directly own the bitcoins held by the company, but are holders of remaining equity after debt and preferred shares.

Strategy said its “digital credit” strategy aims to issue digital credit products equivalent to 10% to 20% of Bitcoin reserves every year when market conditions permit, with an estimated corresponding scale of about 5.4 billion to 10.8 billion US dollars. The company said that if Bitcoin's long-term yield is higher than the cost of financing, the model could increase common shareholders' exposure to Bitcoin per share.

Strategy emphasizes that MSTR, as a common stock of a Bitcoin reserve company, has the dual properties of amplifying returns and risks. The main risks listed by the company include Bitcoin price fluctuations, changes in the financing environment, MNaV compression, dilution of stock issuance, and pressure to repay debt and preferred shares.

Up to now, Strategy is still one of the largest listed companies in the world. The company said it will continue to increase long-term Bitcoin holdings and Bitcoin exposure per share through capital market instruments, digital credit issuance, and active asset allocation in the future.

This article is sponsored by GENG, Build Your Fortune on GENG (https://geng.one)