Strategy’s Dollar Reserve Fails to Soothe Bitcoin-Sales Concern

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Strategy's attempt to alleviate concerns over Bitcoin sales by establishing a dollar reserve has failed to provide reassurance, as the company continues to sell common stock to fund its Bitcoin accumulation, potentially diluting existing shareholders.

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Market impact analysis based on bearish sentiment with 66% confidence.

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Bearish
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66%

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The Tysons Corner, Virginia-based company said in a statement on Monday that the new reserve, funded by proceeds from the sale of shares of class A common stock, would cover at least 21 months of dividend payments. The company has funded its Bitcoin accumulation by repeatedly selling common stock — a controversial strategy that dilutes existing shareholders and has pushed Strategy to issue more expensive forms of capital. If that were to happen, its CEO Phong Le had suggested last week that the firm could sell some of its Bitcoin.

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