Bitcoin 'king' in turmoil

Bitcoin came under strong selling pressure as the market questioned the fundraising model used by Strategy, the world's largest Bitcoin holder, to purchase Bitcoin.

Michael Saylor's Bitcoin fundraising model is facing difficulties. Photo: Bloomberg .

The world's largest cryptocurrency broke through the $60,000 mark two weeks ago, marking the first time it has fallen below this level since the end of 2024. During trading on June 19th (US time), the price of Bitcoin briefly dropped to $62,184 /BTC and has now lost approximately half its value compared to its historical peak set in October 2025.

According to Bloomberg , the market's focus is currently on the price of Strategy's STRC (Stretch) preferred stock – the instrument Michael Saylor's company used to raise capital for recent Bitcoin purchases. The price of STRC has fallen below par value, making further issuance of this hybrid security no longer economically viable for Strategy.

The market became even more sensitive after Saylor surprised everyone earlier this month by selling a small amount of Bitcoin, contradicting his consistent message over the years that investors should hold rather than sell.

Joshua Lim, co-head of global markets at FalconX, said all eyes are now on STRC's performance as a gauge of market pressure on Strategy.

Investors may be testing the company's resolve to continue buying more Bitcoin instead of selling off its holdings to bolster cash reserves and maintain its ability to pay dividends to STRC.

While traditional financial markets maintained their upward momentum thanks to optimistic sentiment across the board, Bitcoin and other major cryptocurrencies like Ether and Solana continued to face selling pressure this week.

You may also like

Ho Chi Minh City's ambitious plan for a 'mega-enterprise'.Becamex announced plans to invest in a series of transportation, industrial park, and digital technology projects during the 2026-2030 period, while also preparing to increase capital to meet investment needs.

Gold ring prices plummet, silver loses 4 million VND/kg.On June 25th, businesses across the board simultaneously lowered the prices of gold and silver, with gold rings experiencing a sharp decline and silver plummeting.

Nam A Bank connects, promotes, and develops the East-West economic axis.Building bridges for cross-border trade through major international financial centers, and strengthening technological links, capital flows, and markets between Eastern and Western economies, are becoming key drivers for sustainable global development.

In addition to concerns related to Strategy, expectations of rising interest rates are also putting further pressure on Bitcoin and risky assets in general.

Bitcoin price continues to plummet. Photo: CoinMarketCap.

In a report to investors, QCP Capital stated that Bitcoin's negative performance stemmed in part from concerns that Strategy might be forced to sell more Bitcoin to pay dividends. These concerns intensified after the company spent $1.5 billion to repurchase convertible bonds maturing in 2029.

STRC was designed as a fundraising machine for Strategy. The company sold these securities at a face value of $100 per share, using the proceeds immediately to buy Bitcoin, while investors received double-digit annual dividends.

However, since May 15th – the ex-dividend date for the most recent dividend payment – ​​STRC has not once returned to the $100 mark. By trading below par value, Strategy is effectively raising capital at an increasingly high cost due to having to accept a higher effective yield for investors. During the June 18th trading session, the price of STRC at one point fell below $83 .

Strategy has not yet commented on these developments.

Jeff Dorman, Chief Investment Officer at Arca, argues that Strategy needs to sell a very large amount of Bitcoin, or issue a significant amount of additional common stock, to bring the STRC price back close to its par value. Otherwise, the market will continue to put pressure on the company's entire capital structure due to current uncertainties.

This expert predicts that Strategy is likely to continue selling small amounts of common stock each month to raise capital. Currently, Strategy's stock has lost 70% of its value in the past year.

You may also like

Vingroup shares fall, VN-Index declines.Selling pressure on Vingroup stocks emerged across the board on June 25th, causing the VN-Index to lose nearly 15 points and ending a streak of three consecutive days of gains.

Banks partner with small and medium-sized enterprises.With policies, technology, and credit all changing, small and medium-sized enterprises (SMEs) need not only capital but also appropriate tools and operational capabilities.

Billionaire Pham Nhat Vuong earns 1.7 trillion VND after 3 days of investing in LPBank shares.Just three trading sessions after appearing on LPBank's shareholder list, billionaire Pham Nhat Vuong's investment of over 6,700 billion VND has already yielded a temporary profit of nearly 1,700 billion VND.

Source: https://znews.vn/ong-trum-bitcoin-lao-dao-post1661396.html