Arthur Hayes: Bitcoin's Sideways Movement Leaves Strategy with Three Options—Issuing Shares, Selling BTC, or Cutting Dividends

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

The enterprise value mNAV of digital asset treasury company Strategy stands at approximately 1.01x, while its basic mNAV and diluted mNAV were around 0.73x and 0.74x respectively as of August 27, both close to the book value of its Bitcoin holdings.

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