Crypto Scenario Insights

Will Strategy's Capital Squeeze Trigger a Forced Bitcoin Liquidation?

What happened

Strategy Inc. faces a severe capital squeeze as its STRC preferred stock trades 24% below par and dividend obligations balloon to $1.2 billion.

What we think

The most likely outcome is a neutral-to-bearish consolidation (50% probability) where Strategy halts Bitcoin purchases to protect its remaining 14-month dividend runway.

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Will Strategy's Capital Squeeze Trigger a Forced Bitcoin Liquidation?

We explain what happened and what could follow. We do not forecast prices.

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