Bitcoin News Today: Bitcoin's Slide Intensifies Debate Over Strategy's Bold Capital Raise

Strategy Inc., the Bitcoin-focused corporation led by billionaire Michael Saylor, has raised €620 million ($715 million) through an upsized offering of its 10% Series A Perpetual Stream Preferred Stock (STRE), signaling continued commitment to Bitcoin as a core reserve asset despite a broader market downturn Strategy Raises €620M in Upsized Stream Preferred Stock Offering to Support Bitcoin Purchases and Growth. The offering, which sold 7.75 million shares at €80 each, was initially priced at €350 million but expanded due to strong investor demand. Proceeds will fund further Bitcoin acquisitions and corporate operations, reinforcing Strategy's position as one of the largest corporate holders of the cryptocurrency Strategy Raises €620M to Boost Bitcoin Purchases.

The preferred shares carry a 10% annual dividend, paid quarterly in cash, with compounding interest if payments are missed, capping at 18% annually Strategy Raises €620M in Upsized Stream Preferred Stock Offering to Support Bitcoin Purchases and Growth. This structure aims to attract institutional investors seeking stable returns while aligning with Strategy's long-term Bitcoin strategy. However, the move comes as Bitcoin trades below $100,000 and Strategy's stock (MSTR) has fallen over 27% in the past month, raising questions about the sustainability of its aggressive crypto bets Michael Saylor Isn’t Backing Down — Even as Bitcoin and MSTR Sink.

Market dynamics have intensified scrutiny on Strategy's approach. James Chanos, the renowned short seller and founder of Kynikos Associates, recently closed his short position against MSTR, citing a compressed valuation gap between the company's market value and its Bitcoin holdings. The market Net Asset Value (mNAV) ratio-comparing MSTR's enterprise value to its BTC reserves-dropped to 1.23x from 2.0x in July, reducing the implied premium from $70 billion to $15 billion MSTR Short Closed as Bitcoin Treasury Firms Show Signs of Life. Chanos argued the trade had "largely played out," while Bitcoin Bond Company CEO Pierre Rochard suggested the bear market for Bitcoin treasury firms may be nearing an end Jim Chanos Exits Strategy Short As Analyst Says Bear Market May Be Over For Bitcoin Treasury Firms.

Critics, including Bitcoin skeptic Peter Schiff, countered that the shrinking premium signals further downside risk, with potential discounts looming if market conditions deteriorate Jim Chanos Exits Strategy Short As Analyst Says Bear Market May Be Over For Bitcoin Treasury Firms. Meanwhile, Strategy's stock hit a seven-month low in pre-market trading following the preferred stock pricing announcement, as Bitcoin's slide below $100,000 weighed on investor sentiment MSTR Stock Slides Toward Seven-Month Low After Strategy Sets €80 Preferred Stock Price.

Despite the volatility, Saylor remains bullish. The company has continued purchasing Bitcoin, albeit at a slower pace, and recently hinted at further buys via social media posts tied to its Bitcoin tracker Jim Chanos Exits Strategy Short As Analyst Says Bear Market May Be Over For Bitcoin Treasury Firms. Strategy's treasury now holds 641,205 BTC, valued at over $64 billion, with an unrealized profit of 43% Bitcoin-Linked Stocks Surge After Record Drop—Is the Bottom In?.

The preferred stock offering underscores Strategy's dual identity as both a tech-financial hybrid and a Bitcoin proxy. While the high-yield structure offers investors downside protection, the company's fortunes remain closely tied to crypto's price swings. With U.S. government shutdown risks easing and macroeconomic optimism resurfacing, some analysts see potential for stabilization in Bitcoin treasury stocks-a sector that has lost over $100 billion in market value this year Bitcoin Treasury Stocks May Be Nearing a Turning Point as Short Positions Close.