Strategy's Bitcoin Sale Raises Solvency Concerns As Bitcoin Crashes

Bitcoin price collapsed as Strategy faced tighter liquidity conditions and paused its BTC buying, raising questions about solvency amid a tightening market. Bitcoin slid about 21% in 10 days, retesting the $61,000 level, the first test in four months, while the company behind Strategy (STRC US) had been the largest known Bitcoin buyer, accumulating 126,016 BTC for about $9.31 billion since March. On May 15, Strategy used $1.38 billion of cash raised from recent equity issuances to buy back some convertible debt, reducing cash to roughly $900 million and leaving six months of coverage for dividends. The STRC preferred stock has a $100 strike and an 11.5% annual dividend, paid monthly, enabling new issuances when price hits $100.