Analyst: Strategy Faces Four Major Pressures, No Systemic Risk Yet

06/21 11:10

CryptoQuant analyst Axel Adler released a weekly market analysis report indicating that Strategy has essentially shifted from a Bitcoin leverage tool to a complex capital structure risk asset. It currently faces four major pressures: Bitcoin falling below the average cost line, declining financing ability of preferred stock STRC, the sale of Bitcoin breaking the narrative of 'buy and hold', and dilution pressure from stock issuance. However, Axel Adler believes that the current impact of Strategy on the Bitcoin market is moderately negative and does not constitute systemic risk, with no immediate need for large-scale Bitcoin sell-offs. Strategy has previously clarified that holding stock does not equate to holding Bitcoin, as there is no BTC redemption right and no mechanism similar to a spot ETF for maintaining synchronization between stock price and net asset value. If Bitcoin rises above its average cost and the market allows for the issuance of stocks and preferred shares at lower costs, Strategy may restart the 'Bitcoin flywheel' and restore market confidence.
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