Strategy "Death Spiral" Fears Dismissed: Cash Buffer and STRC Structure Viewed as Key Defense Lines

Odaily Planet Daily News Recent market concerns around Strategy (MSTR) potentially facing a "death spiral sell-off" have continued to fester, against the backdrop of Bitcoin prices briefly falling to around $60,000, sparking discussions on the stability of its leveraged treasury model. However, Wall Street institutions such as Benchmark and TD Cowen have released reports clearly refuting this bearish narrative and maintaining a "Buy" rating on Strategy.

Benchmark analyst Mark Palmer stated that the "death spiral" hypothesis ignores multiple buffer layers: before any large-scale sale of Bitcoin, the company would need to consume approximately $1 billion in cash reserves for dividend payments. Furthermore, its current Bitcoin holdings of around $55 billion provide a strong buffer. STRC is a class of perpetual preferred stock designed to maintain a price of around $100 and offer a floating annualized yield of approximately 11.5%. Analysts believe this mechanism forms a cycle of "yield demand → financing → BTC accumulation", positioning it as the core capital engine for its long-term treasury model.

TD Cowen pointed out that even during a significant Bitcoin pullback, the STRC structure has demonstrated relatively low volatility, helping to stabilize the capital structure. They position it as a "yield and capital protection tool" rather than a purely high-risk speculative instrument. However, there are also critical voices in the market, suggesting that this structure could form a risk mechanism similar to a "negative feedback loop", potentially triggering asset sell-off pressure under extreme circumstances. (The Block)