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Michael Saylor's Strategy (MSTR) Manages Big Bounce After Early Monday Plunge
Strategy created a $1.44 billion cash reserve to cover 21 months of debt payments while lowering 2025 bitcoin price and earnings forecasts by over 90%, easing investor concerns.
- On Monday, Strategy established a US dollar reserve of $1.44 billion funded by at‑the‑market stock sales and cut its 2025 bitcoin and earnings guidance from October 30.
- Facing an investor selloff, MSTR shares fell about 12.5% on Monday to $155.61 amid an overnight bitcoin crash and fears it might sell crypto to meet obligations.
- The company projects Bitcoin dollar gains of $8.4 billion to $12.8 billion and a Bitcoin yield for 2025, with operating income from a $7.0 billion loss to a $9.5 billion profit.
- Shares fell about 12.5% as investors in common stock sold on the reserve news, yet MSTR share price nearly erased losses to finish down 3.25%, while Peter Schiff said, `Today is the beginning of the end of Strategy.`
- Amid pressure over funding, CEO Phong Le said on a podcast Friday that `we would sell bitcoin if we needed to fund our dividend payments below 1x mNAV` while Strategy aims to maintain dividend coverage for at least 12 months, extending to 24 months or more.
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Michael Saylor's Strategy (MSTR) Manages Big Bounce After Early Monday Plunge
Peter Schiff took a victory lap after the company Monday morning announced it had raised $1.44 billion via common stock sales as a reserve to pay preferred dividends for nearly two years.
·Manila, Philippines
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Strategy cuts full-year bitcoin yield and profit outlook amid crypto pullback: CNBC Crypto World
On today's episode of CNBC Crypto World, bitcoin falls to its lowest level since April to kick off December. Plus, Strategy announces the company established a $1.44 billion cash reserve to fund dividends on its preferred stock. And, John Wang, head of digital assets at Kalshi, explains the prediction markets platform's big bet on Web3.
·United States
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BizToc
BizTocStrategy announces $1.44 billion “US dollar reserve” to avoid participating in bitcoin fire sale
The digital treasury company also lowered its outlook for full-year operating income, net income, and earnings per share by more than 90% compared to its October 30 guidance.
Coverage Details
Total News Sources15
Leaning Left2Leaning Right1Center3Last UpdatedBias Distribution50% Center
Bias Distribution
- 50% of the sources are Center
50% Center
L 33%
C 50%
R 17%
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