TLDR:
- Strategy holds 649,870 Bitcoin but faces rising dividend obligations that strain its cash position.
- The firm lost its premium over NAV, ending its ability to issue equity without heavy dilution.
- MSCI’s January decision could trigger billions in forced selling due to index exclusion rules.
- October’s liquidity shock raised concerns about market depth during large forced Bitcoin sales.
Strategy’s Bitcoin engine now shows clear strain as new financial data points to a tightening survival window. The firm controls 649,870 Bitcoin, yet its cash reserves and dividend obligations are moving in opposite directions.
Recent disclosures show only 54 million dollars in cash against 700 million dollars a year in preferred dividends. The model now relies on constant funding inflows that have sharply slowed.
Strategy’s Bitcoin Holdings Under a Collapsing Funding Cycle
Strategy raised $19.5 billion in 2025, according to market commentary shared on social platform X by 0xMarioNawfal. Almost all of it went toward old debt rather than new accumulation.
The firm must now source 700 million dollars each year before buying another Bitcoin. Its software business still burns cash, which adds pressure to the cycle.
The company previously benefited from a wide premium over net asset value. That premium fell from two times NAV to one times, according to the same post.
Moreover, the drop ended its ability to raise equity without heavy dilution. Every new issuance now reduces shareholder exposure to BTC rather than increasing it.
Dividend-linked mechanics have also tightened. Preferred dividend rates rose from 9 percent to 10.5 percent as the share price slipped under benchmark levels.
If prices fall again, that rate climbs once more. The structure forces the company into higher annual obligations unless it sells Bitcoin, which would undermine its accumulation model.
MSCI Deadline and Market Liquidity Risks Create New Timeline
A key date now sits ahead. Strategy expects MSCI to decide on January 15, 2026 whether companies with more than half their assets in digital assets remain eligible for index inclusion.
The firm sits at 77 percent Bitcoin. Estimates circulating in markets suggest forced selling between 2.8 billion and 8.8 billion dollars if exclusion occurs.
Pressure on market depth also resurfaced in October. A 17 percent Bitcoin drop erased most visible order book support and triggered 19 billion dollars in liquidations.
Besides, the post noted that the market struggled to absorb that move. A forced sale of 100,000 Bitcoin could therefore strain liquidity during a similar stress event.
The company stated that dividends are covered for decades through controlled Bitcoin sales. The social post challenged that math and argued that selling one billion dollars in Bitcoin each year is not feasible during volatile periods.
The coming months now test whether large corporate treasuries can operate with sovereign-scale Bitcoin exposure on quarterly funding cycles.
The post Strategy Bitcoin Holdings Face New Pressure as Funding Gap Widens appeared first on Blockonomi.
Source: https://blockonomi.com/strategy-bitcoin-holdings-face-new-pressure-as-funding-gap-widens/