Arthur Hayes: With Bitcoin Trading Sideways, Strategy Faces Three Options—Share Issuance, Selling BTC, or Cutting Dividends

Odaily News: Arthur Hayes stated that Bitcoin has been trading sideways around the $80,000 mark for most of this week, which may undermine the foundation of Strategy's Bitcoin strategy. Strategy currently holds 840,447 BTC and is required to pay approximately $1.5 billion in annual dividends on STRK and STRC.

Digital asset treasury company Strategy has an enterprise value mNAV of approximately 1.01x, with basic mNAV and diluted mNAV standing at around 0.73x and 0.74x, respectively, as of August 27—close to the book value of its Bitcoin holdings.

Arthur Hayes noted that Michael Saylor could choose to issue new shares, directly sell Bitcoin, or cut preferred stock dividends. The STRK dividend yield is 8%, while STRC offers a dividend yield between 10% and 11.5%. (Bitcoin.com News)