Bitcoin Falls 50%: How Michael Saylor's Company Is Fighting Back
With Bitcoin near $60,000, Strategy shifts from 'never sell' to selling some coins. A Schwab expert says the moves are buying time.
Image source: Bitcoin Magazine
Bitcoin, the world's biggest cryptocurrency (a type of digital money), is going through a rough patch. Its price is sitting around $60,000 — about 50% below its all-time high. That's putting pressure on companies that bet big on it.
One of those companies is Strategy, led by Michael Saylor. It's the largest corporate owner of Bitcoin in the world. According to Jim Ferraioli, a crypto research director at Schwab (a major U.S. investment firm), Strategy's recent moves have helped it survive the downturn.
How Strategy raised money to buy Bitcoin
Strategy funded much of its Bitcoin buying using something called preferred stock (a special type of company share that pays regular income, similar to a bond). One product, nicknamed STRC, was designed to trade near $100 per share.
- STRC dropped to about $70, well below its target price.
- To fix this, Strategy raised its dividend (regular cash payout) to 12%.
- It also approved $2 billion in buybacks (buying back its own shares to boost the price).
- The stock has since started recovering toward $100.
Strategy was famous for a "never sell Bitcoin" stance. Now, Ferraioli says, it has moved to "strategically sell Bitcoin" — meaning it will sell some coins when needed. He called this a fair change given the market pressure.
Other things affecting Bitcoin's price
- President Trump hinted Bitcoin could be included in new "Trump Accounts" savings programs — a possible new group of buyers.
- Bitcoin's price is heavily driven by narratives (popular stories and hype), Ferraioli said.
- The U.S. budget deficit (the gap between government spending and income) has shrunk from 8–9% of GDP to about 5%.
This is an AI-generated summary. Read the original article at: https://bitcoinmagazine.com/news/schwab-strategist-backs-bitcoin-strategy