Analysts bombard strategy as CEO hints at new focus beyond Bitcoin

Six years of change: From Bitcoin hoarder to credit company?

Exactly six years ago, a company that was then little known in the cryptocurrency world made revolutionary adjustments to its asset reserve strategy and began adopting Bitcoin. The company, then called MicroStrategy, began to accumulate BTC on a large scale and further accelerated the pace of purchases after the 2024 U.S. presidential election.

The market has long been accustomed to the company's multi-billion-dollar news of new increases in holdings. Its total positions have increased exponentially, currently reaching 843,775 positions. Throughout this time, Bitcoin bulls have always heard one voice: The company (and its former CEO) will never sell... until they do. Then everything changed.

During a recent earnings conference call, the company hinted that it planned to sell as much as $5 billion worth of Bitcoin, which is well above the previously announced $1.25 billion.

Latest Change

Strategy (currently known) has not purchased BTC for five consecutive weeks, setting its longest acquisition suspension in years. The company has not invested money in BTC, but has steadily increased its cash reserves through recent financing activities. Strategy has been rebuilding its U.S. dollar position while continuing to explore financial options associated with its expanding portfolio of preferred stock issuance.

In the most recent official change, CEO Phong Le announced the company's new main corporate goals on social media, which read as follows: "Our corporate goal is to have STRC stock trade between $99 and $100 over time." On the earnings call, he was more specific: "Our intention is to sell Bitcoin when we see it appropriate for three reasons: first, to provide up to $1.25 billion in US dollar reserves; second, to pay $1.76 billion in dividends and interest per year; and third, to fund up to $2 billion in repurchases of common and preferred shares."

The tweet and comment triggered an immediate reaction from some prominent industry figures and long-time critic Peter Schiff. Schiff quickly concluded: "In other words, ordinary shareholders are doomed." However, well-known analyst Crypto Kaleo was not so polite. He recently argued that Strategy would have to sell at least 50,000 BTC in the next few years to pay dividends. He asked sarcastically in a tweet whether the CEO remembers that the company's main corporate goal is to increase its bitcoin holdings per share? Then he added: "It's only been two months. It shouldn't be difficult to remember!"

In another post, he took the criticism to a higher level, claiming Strategy is no longer a BTC company, but rather operates as a credit company with a "terrible" credit rating.

"Strategy went from having its main goal increasing its Bitcoin holdings per share as a key goal to trying to ensure that its preferred stock trading price recovered to $100... in just two months. They are no longer a BTC company, but a credit company. And their credit ratings are terrible."

Comments below his post were mixed. Some agree that Strategy is increasingly like a leveraged financial institution rather than a purely BTC holding company. Others defended the company's approach, pointing out that maintaining confidence in STRC is crucial if strategy companies want to continue to efficiently and securely raise funds for future cryptocurrency purchases.

Importance of STRC

The company co-founded by Saylor has launched STRC as part of its growing series of preferred stock issues aimed at funding its long-term BTC accumulation strategy. However, the STRC needs to trade at a face value of $100 to function properly, but it has not been possible for months. It fell below $75, before the company turned its focus to rebuilding its dollar reserves. Since then, the STRC has recovered to nearly $90.

As a result, some investors view Le's remarks as a tactical short-term goal rather than that Strategy has abandoned its Bitcoin-centered vision. Still, the timing has raised questions about the company's changing identity and strategy, especially in the context of current market uncertainty.