Bitcoin Holds Above $60,000 Amid Strategy Inc Funding Scrutiny
Bitcoin was trading up 1.19% at $60,748.8 as of 12:49 ET (16:49 GMT) on Saturday, maintaining a position above the psychologically important $60,000 level. Market attention centered on June 30, the ex‑dividend date for Strategy Inc’s (NASDAQ:MSTR) STRC perpetual preferred shares, when the monthly dividend rate will be reset.
Investors holding STRC shares before the ex‑dividend date will receive the first semi‑monthly dividend of $0.48 per share on July 15. The preferred shares are currently trading near $73, which is 27% below their $100 par value, translating to an effective yield of roughly 15%. Some market participants anticipate that Strategy may raise the dividend rate from the current 11.5% to better align with market pricing.
The decline in STRC’s price has reignited debate over Strategy’s capital‑raising model, which relies on issuing preferred stock to fund additional Bitcoin purchases. Brad Garlinghouse, Chief Executive of Ripple, told CNBC that while he remains bullish on Bitcoin, the company’s reliance on preferred‑share issuance constitutes “financial engineering rather than long‑term value creation.” He cited the share price falling below par as evidence that investor confidence in the funding model is weakening, emphasizing that his criticism targets the financing strategy, not Bitcoin itself.
Strategy has accumulated approximately 844,000 Bitcoin at an average purchase price of $75,600 per coin. With Bitcoin trading around $60,750, the company’s unrealized paper loss exceeds $12 billion, according to data from BitcoinTreasuries. This loss surpasses the total market capitalisation of several well‑known cryptocurrencies, including Dogecoin, Cardano, Chainlink, Litecoin, and Bitcoin Cash, underscoring the scale of Strategy’s leveraged exposure.
Analysts are divided on the way forward. Some suggest that Strategy should temporarily slow Bitcoin purchases and bolster its cash position, noting that the lower preferred‑share price makes raising fresh capital more difficult. Others argue that despite reduced efficiency, the financing model remains viable and that long‑term performance will ultimately hinge on Bitcoin’s price recovery rather than short‑term fluctuations in the preferred shares.
Broader Crypto Market Movements
During the thin Saturday trading session, other cryptocurrencies also posted gains: Ether rose 1.8% to $1,605.88, XRP gained 2.6%, BNB slipped 0.1%, Solana added 0.4%, Cardano rose 0.3%, Dogecoin increased 1.3%, while the memecoin TRUMP fell 1.7%.