Arthur Hayes said Bitcoin spent most of the week trading around $80,000, a range-bound move that could undermine the basis of Strategy’s Bitcoin play. He said the company currently holds 840,447 BTC and needs to pay roughly $1.5 billion a year in dividends tied to STRK and STRC. Hayes added that Strategy’s enterprise value mNAV stands near 1.01x, while its base mNAV and diluted mNAV were about 0.73x and 0.74x, respectively, on Aug. 27, putting them close to the book value of the company’s Bitcoin holdings. Against that backdrop, Hayes said Michael Saylor has three options: issue new shares, sell Bitcoin directly, or cut preferred-share dividends. He also cited an 8% dividend rate for STRK and a 10% to 11.5% range for STRC, according to Bitcoin.com News.
Arthur Hayes said Bitcoin traded mostly around $80,000 this week, and that could weaken the foundation of Strategy’s Bitcoin strategy.
Hayes said Strategy currently holds 840,447 BTC and needs to pay about $1.5 billion a year in dividends for STRK and STRC.
mNAV nears the book value of its Bitcoin holdings
He said the digital asset treasury company has an enterprise value mNAV of about 1.01x. As of Aug. 27, base mNAV and diluted mNAV were about 0.73x and 0.74x, respectively, close to the book value of the Bitcoin on its balance sheet.
Hayes points to three possible moves
According to Hayes, Michael Saylor could issue new shares, sell Bitcoin outright, or reduce dividends on the preferred stock.
He added that STRK carries an 8% dividend rate, while STRC pays between 10% and 11.5%.
The report was cited by Bitcoin.com News.
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