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Strategy relaxes equity sale financing restrictions, allows issuance of common stock when stock price is less than 2.5 times Bitcoin holdings
Summary: According to Bloomberg, Strategy has relaxed its equity sale financing restrictions, allowing the issuance of common stock when the stock price is less than 2.5 times its corresponding Bitcoin holdings, providing Strategy with more flexibility to raise funds to increase BTC holdings. Some market participants are optimistic about this move, believing that the relaxed rules ...
According to Bloomberg, Strategy has relaxed its equity sale financing restrictions, allowing the issuance of common stock when the stock price is less than 2.5 times its corresponding Bitcoin holdings, providing Strategy with more flexibility to raise funds to increase BTC holdings. Some market participants are optimistic about this move, believing that the relaxed rules indicate Strategy's long-term bullish attitude towards Bitcoin, enabling them to raise funds at a lower cost, potentially further boosting the price of Bitcoin. However, some market participants point out that since November 2024, MSTR's Bitcoin premium has decreased from 3.4 times to 1.6 times, and the relaxation of financing restrictions will further dilute shareholder equity.
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Link: Strategy relaxes equity sale financing restrictions, allows issuance of common stock when stock price is less than 2.5 times Bitcoin holdings [Copy]