Saylor confirms Strategy will survive Bitcoin crashing to $8,000 – but can it escape the slow bleed of dilution?

Strategy, which uses corporate financing to accumulate Bitcoin, asserts it can withstand a significant BTC price drop to $8,000. However, the core concern for investors is the 'slow bleed of dilution' caused by issuing new shares to fund its strategy, especially when the stock trades below key conversion price thresholds. A critical date is September 15, 2027, when holders of $1.01 billion in 2028 convertible notes can demand cash repurchase if the stock is below the $183.19 conversion price. While Strategy has built a substantial cash reserve, using it for the put option might necessitate further equity issuance later to replenish the reserve, compounding dilution. Furthermore, preferred securities introduce another layer of potential cost increases if their prices weaken. The central tension for common shareholders is whether Strategy can bridge to 2027 without its Bitcoin accumulation strategy morphing into a multi-year dilution strategy, even if Bitcoin avoids an $8,000 crash.

(Source：CryptoSlate)