Has Strategy’s capital overhaul put an end to ‘death spiral’ fears?
Strategy answered growing “Terra/LUNA” fears with a new capital plan after Bitcoin fell below $60,000 and MSTR dropped sharply from its high. The framework includes up to $1 billion in buybacks for MSTR, up to $1 billion for STRC and related securities, a higher STRC dividend near 12%, and a larger cash buffer of $2.55 billion. It also said it may sell up to $1.25 billion in Bitcoin if needed to cover dividends or debt. Shares rallied after-hours on the announcement. STRC is a perpetual preferred security tied to Strategy’s Bitcoin treasury model, offering yield and exposure to BTC-linked capital structure. Critics say the real risk is not Bitcoin alone, but reflexive dependence on funding markets: falling BTC, weaker share prices, and reduced investor appetite could create a negative feedback loop. Supporters argue the company can survive even severe stress if capital markets remain functional. The update improves transparency and liquidity, but does not remove Strategy’s core dependence on market access.
