Bitcoin News Today: Saylor's Burning Ship: MicroStrategy Stands by Bitcoin as Market Pressures Mount

Michael Saylor, executive chairman of MicroStrategy (MSTR), has categorically denied reports that the company is selling 47,000 bitcoin (BTC) amid a sharp decline in both its stock price and BTC's value. The rumors, fueled by on-chain data showing BTC movements from company-controlled wallets, prompted immediate backlash from Saylor, who insisted there is "no truth to the rumor" and emphasized that Strategy remains committed to its aggressive BTC accumulation strategy according to reports.

The controversy emerged after blockchain analytics firm Arkham Intelligence noted a reduction in Strategy's BTC holdings, sparking speculation that the company—which holds over 641,000 BTC, valued at roughly $67 billion—might be liquidating assets to stabilize its balance sheet. Saylor, however, clarified in a CNBC appearance that the firm is "accelerating [its] purchases" and will report its next BTC acquisitions on Monday. He also posted "HODL" on X alongside an image of a burning ship, symbolizing his refusal to sell.

TD Cowen analysts have maintained a bullish stance on Strategy's BTC treasury model, projecting that the firm will add 6,720 BTC to its holdings through a €620 million euro-denominated preferred stock offering (STRE). The firm's strategy of issuing preferred securities to fund BTC purchases remains central to its growth, with TD Cowen estimating that STRE issuance could boost Strategy's year-to-date BTC yield to over 27%, nearing its 2025 30% target. The research firm reiterated a $141,277 base-case price target for BTC by year-end, with potential upside to $160,000 and downside to $60,000.

The rumors have intensified scrutiny on Strategy's financial health, as its stock has plummeted nearly 35% year-to-date and trades below its net asset value (NAV). The company's market-to-NAV (mNAV) ratio has dipped below 1, a metric that some analysts suggest could justify selling BTC to buy back undervalued shares. However, Saylor dismissed such concerns, arguing that BTC's recent pullback from a peak of $126,000 to $96,000 still represents a strong long-term position.

The Bitcoin treasury strategy is gaining traction beyond Strategy. Adam Back is launching the Bitcoin Standard Treasury Company (BSTR) via a SPAC merger with Cantor Equity Partners. BSTR will debut with over 30,000 BTC and $1.5 billion in purchasing power, positioning itself as a major player in the space. Meanwhile, Hong Kong-based Reitar Logtech and UK firm VivoPower are also entering the fray, with plans to allocate $1.5 billion to BTC and $100 million to XRP, respectively, as part of broader treasury diversification efforts.

Despite Saylor's confidence, market skepticism persists. Short-seller Jim Chanos recently closed his MicroStrategy short position, citing concerns that mNAV approaching 1x could trigger forced sales. Traders on platforms like Stocktwits have speculated that Strategy's stock could face further downward pressure if BTC remains in a bearish trend.

For now, Saylor remains steadfast. "We've put in a pretty strong base of support around here," he told CNBC, urging investors to adopt a long-term perspective. As the Bitcoin treasury model evolves, with new entrants and shifting market dynamics, Strategy's ability to maintain its aggressive BTC accumulation strategy will remain a focal point for investors and analysts alike.

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