Bitcoin News Today: Strategy Pivots to Credit Markets to Sustain Bitcoin Expansion Amid Downturn

Strategy, the Nasdaq-listed Bitcoin treasury company, is poised to increase its Bitcoin holdings despite recent market turbulence, according to CEO Phong Le, who hinted at potential sales to fund dividends if the company's market-to-Bitcoin value (mNAV) dips below parity. The firm, which holds 649,870 BTC—the largest corporate stash—faces a critical juncture as 51% of its coins were purchased at prices higher than the current $86,900, according to a CryptoQuant analysis. While the company remains profitable with a $56.4 billion Bitcoin valuation versus a $49 billion market cap, the uneven cost structure highlights overpayment during 2021, 2024, and early 2025 buying sprees.

Market conditions remain fragile, with Bitcoin trading below $90,000 amid ETF outflows exceeding $270 million in two sessions, according to Coinglass data. The liquidity stress index sits at -0.28, indicating weak demand, while the scarcity index of 2.40 suggests a mid-cycle adjustment. Binance, the most reactive liquidity hub, shows sharper volatility but stabilized inflows according to EthNews. Meanwhile, whale accumulation around $85K–$90K, confirmed by spot order size clusters, signals early reversal signals, though retail participation remains muted according to EthNews.

Strategy's financial strategy is evolving as it navigates these dynamics. The company plans to raise $1 billion post-merger with NASDAQ-listed Asset Entities to expand its Bitcoin reserves through equity and debt, leveraging tax-free Section 351 equity-for-Bitcoin swaps for accredited investors. This follows CleanSpark's recent shift from a "HODL" strategy to equity raises to avoid dilution, reflecting broader industry caution.

CEO Le emphasized that Strategy's focus has shifted from equity to credit markets, introducing perpetual preferred securities like 8% dividend-paying STRK and 10.5% Stretch (STRC) to generate income according to Forbes. These instruments, classified as return of capital for tax purposes, aim to attract yield-focused investors. However, the recent Bitcoin slump has pressured preferreds, with STRC trading below par and yielding 11%.

Despite the challenges, Strategy's shares remain up 1,160% since its Bitcoin purchases began in 2020. Le and Saylor remain confident, citing contingency plans such as Bitcoin derivatives and structured yield strategies to sustain liquidity. The firm's debt-to-Bitcoin ratio, currently 11%, is projected to reach zero by 2029 through gradual bond conversions according to Forbes.

As the market tests key support levels, Strategy's ability to balance Bitcoin accumulation with financial innovation will determine its next chapter. With ETF outflows persisting and whale activity intensifying, the company's pivot to credit markets may redefine its role in the Bitcoin ecosystem.