#BTCProbes60KKeySupportLevel
Bitcoin holds above $60,000; Strategy’s financing model under scrutiny
Bitcoin continued to hold above the $60,000 level on Saturday. Broader cryptocurrency markets maintained their upward momentum as investors weighed growing concerns regarding Strategy’s Bitcoin accumulation strategy ahead of a critical dividend reset.
Bitcoin was trading at $60,348.40, up 0.73%, maintaining its position above the psychologically significant $60,000 mark. Market attention is largely focused on June 30, the date when Strategy’s STRC perpetual preferred shares will trade ex-dividend and undergo a monthly dividend rate reset.
Investors holding the shares prior to the ex-dividend date will receive an initial semi-monthly dividend payment of $0.48 per share on July 15.
The dividend reset is viewed as a particularly significant development. STRC is currently trading around $73—approximately 27% below its $100 par value—pushing the effective yield to around 15%. Some investors anticipate that Strategy will raise the dividend rate from its current 11.5% level to better reflect market pricing.
Weakness in STRC has reignited debate over Strategy’s capital-raising model. In an interview, Brad Garlinghouse stated that he remains optimistic about Bitcoin but argued that the company's reliance on issuing preferred shares to fund additional Bitcoin purchases has negatively impacted the broader cryptocurrency market.
Garlinghouse characterized this approach as financial engineering rather than long-term value creation and cited the drop in STRC below its par value as evidence of waning investor confidence in the financing model. He emphasized that his criticisms were directed at the financing strategy, not at Bitcoin itself.
Strategy has accumulated a total of approximately 844,000 Bitcoin at an average purchase price of around $75,600 per coin. Given that Bitcoin is trading around $60,350, the company's unrealized losses exceed $12 billion.
This paper loss exceeds the total market capitalization of many well-known cryptocurrencies—including Dogecoin, Cardano, Chainlink, Litecoin, and Bitcoin Cash—highlighting the scale of Strategy’s leveraged exposure to the world's largest cryptocurrency.
Some analysts question whether the company should temporarily slow its Bitcoin purchases and strengthen its cash position, as falling preferred share prices make raising new capital more difficult.
Others argue that while the efficiency of the financing model may have diminished, it remains functional, suggesting that long-term performance hinges on a recovery in Bitcoin's price rather than short-term fluctuations in preferred shares.
Cryptocurrency prices today: Altcoins show mixed performance following earlier gains
Broader cryptocurrency markets traded mixed on Saturday amidst low trading volumes.
Ether rose 0.5% to $1,583.12.
XRP gained 1.2%, while BNB fell 1.0%.
Solana dropped 0.8% and Cardano declined 1.0%.
Among memecoins, Dogecoin fell 0.8% and TRUMP dropped 1.8%.
$BTC $XRP $DOGE
Bitcoin holds above $60,000; Strategy’s financing model under scrutiny
Bitcoin continued to hold above the $60,000 level on Saturday. Broader cryptocurrency markets maintained their upward momentum as investors weighed growing concerns regarding Strategy’s Bitcoin accumulation strategy ahead of a critical dividend reset.
Bitcoin was trading at $60,348.40, up 0.73%, maintaining its position above the psychologically significant $60,000 mark. Market attention is largely focused on June 30, the date when Strategy’s STRC perpetual preferred shares will trade ex-dividend and undergo a monthly dividend rate reset.
Investors holding the shares prior to the ex-dividend date will receive an initial semi-monthly dividend payment of $0.48 per share on July 15.
The dividend reset is viewed as a particularly significant development. STRC is currently trading around $73—approximately 27% below its $100 par value—pushing the effective yield to around 15%. Some investors anticipate that Strategy will raise the dividend rate from its current 11.5% level to better reflect market pricing.
Weakness in STRC has reignited debate over Strategy’s capital-raising model. In an interview, Brad Garlinghouse stated that he remains optimistic about Bitcoin but argued that the company's reliance on issuing preferred shares to fund additional Bitcoin purchases has negatively impacted the broader cryptocurrency market.
Garlinghouse characterized this approach as financial engineering rather than long-term value creation and cited the drop in STRC below its par value as evidence of waning investor confidence in the financing model. He emphasized that his criticisms were directed at the financing strategy, not at Bitcoin itself.
Strategy has accumulated a total of approximately 844,000 Bitcoin at an average purchase price of around $75,600 per coin. Given that Bitcoin is trading around $60,350, the company's unrealized losses exceed $12 billion.
This paper loss exceeds the total market capitalization of many well-known cryptocurrencies—including Dogecoin, Cardano, Chainlink, Litecoin, and Bitcoin Cash—highlighting the scale of Strategy’s leveraged exposure to the world's largest cryptocurrency.
Some analysts question whether the company should temporarily slow its Bitcoin purchases and strengthen its cash position, as falling preferred share prices make raising new capital more difficult.
Others argue that while the efficiency of the financing model may have diminished, it remains functional, suggesting that long-term performance hinges on a recovery in Bitcoin's price rather than short-term fluctuations in preferred shares.
Cryptocurrency prices today: Altcoins show mixed performance following earlier gains
Broader cryptocurrency markets traded mixed on Saturday amidst low trading volumes.
Ether rose 0.5% to $1,583.12.
XRP gained 1.2%, while BNB fell 1.0%.
Solana dropped 0.8% and Cardano declined 1.0%.
Among memecoins, Dogecoin fell 0.8% and TRUMP dropped 1.8%.
$BTC $XRP $DOGE
