👑 The Strategy maintains its course towards the S&P 500 despite the drop in Bitcoin
The market correction has rekindled doubts about corporate treasury strategies for Bitcoin, but Matrixport and 10X claim that the largest holder of BTC — the Strategy — remains a candidate for the S&P 500 and does not face forced liquidation risk.
➡️ What happened
🌎 The shares of the Strategy fell from a peak of $474 to around $207
🌎 Investors who entered with inflated NAV now face valuation compression
🌎 Matrixport sees no 'near' risk of the company needing to sell BTC to pay debts
➡️ Pressure on investors and mNAV
🌎 The main impact falls on shareholders, not on the treasury in BTC
🌏 The mNAV of various digital treasuries has fallen below 1, complicating new share issuances
✨ Not only the Strategy is under pressure, but also Bitmine, Metaplanet, Sharplink Gaming, Upexi, and DeFi Development Corp
➡️ S&P 500 index and credit rating
🌟 Matrixport estimates that the Strategy can still enter the S&P 500 in 2025
🌟 10X Research gives about a 70% probability of inclusion by the end of the year
🌟 S&P Global gave a B- rating — speculative, but the first of its kind for a company with treasury in Bitcoin
➡️ What management says
🌟 Michael Saylor states that the Strategy's model can withstand drops of 80–90% in BTC
🌟 The company bought 8,178 BTC for ~$835m in the last transaction
🌟 The strategy remains: use the stock market to increase the position in BTC
Conclusion: the Strategy shows that a large Bitcoin treasury can withstand deep drops without selling, but timing errors remain costly. For the market, it is another step towards the institutionalization of BTC.
#BitcoinSPACDeal #StrategyBTCPurchase #BinanceHODLerMorpho #BitcoinSPACDeal
The market correction has rekindled doubts about corporate treasury strategies for Bitcoin, but Matrixport and 10X claim that the largest holder of BTC — the Strategy — remains a candidate for the S&P 500 and does not face forced liquidation risk.
➡️ What happened
🌎 The shares of the Strategy fell from a peak of $474 to around $207
🌎 Investors who entered with inflated NAV now face valuation compression
🌎 Matrixport sees no 'near' risk of the company needing to sell BTC to pay debts
➡️ Pressure on investors and mNAV
🌎 The main impact falls on shareholders, not on the treasury in BTC
🌏 The mNAV of various digital treasuries has fallen below 1, complicating new share issuances
✨ Not only the Strategy is under pressure, but also Bitmine, Metaplanet, Sharplink Gaming, Upexi, and DeFi Development Corp
➡️ S&P 500 index and credit rating
🌟 Matrixport estimates that the Strategy can still enter the S&P 500 in 2025
🌟 10X Research gives about a 70% probability of inclusion by the end of the year
🌟 S&P Global gave a B- rating — speculative, but the first of its kind for a company with treasury in Bitcoin
➡️ What management says
🌟 Michael Saylor states that the Strategy's model can withstand drops of 80–90% in BTC
🌟 The company bought 8,178 BTC for ~$835m in the last transaction
🌟 The strategy remains: use the stock market to increase the position in BTC
Conclusion: the Strategy shows that a large Bitcoin treasury can withstand deep drops without selling, but timing errors remain costly. For the market, it is another step towards the institutionalization of BTC.
#BitcoinSPACDeal #StrategyBTCPurchase #BinanceHODLerMorpho #BitcoinSPACDeal
