<p>The cryptocurrency market continues to be sluggish, with Bitcoin hitting a low of $74,604 today, currently reporting at around $76,500, down nearly 40% from last October's high of about $126,000. More notably, the average Bitcoin cost for the world's largest cryptocurrency asset reserve company, Strategy (MSTR), is currently $76,037, meaning that Bitcoin's price has briefly fallen below this long-considered psychological bottom, raising doubts about this model of permanently accumulating Bitcoin through equity issuance. The stock closed at $149.71 last Friday, but the latest night trading offered by brokers has dropped over 7% to $138.26.</p>
<h2>Strategy Currently Has No Financial Pressure</h2>
<p>According to Bloomberg, Strategy's stock price has fallen over 70% from its peak, its equity premium has nearly disappeared, and the tightening capital market is putting its founder Michael Saylor's strategy to the test.</p>
<p>The report indicates that Strategy currently has no imminent financial pressure, no margin call requirements, and no expectation of being forced to sell Bitcoin, as the company has accumulated $2.25 billion in cash reserves through stock sales. However, if Bitcoin prices do not rebound or if investor demand for its stock does not increase, the company's operational space will continue to shrink.</p>
<h2>After Premium Disappears, Issuing Shares Dilutes Equity</h2>
<p>In fact, Strategy's core strategy is quite simple: to raise funds by selling stock at prices above the value of its Bitcoin holdings, and then use that capital to purchase more Bitcoin. Essentially, it is arbitraging through the stock market to accumulate cryptocurrency, making the company a favorite among speculative investors during the last bull market, but that period has passed.</p>
<p>Although Strategy still holds over 712,000 Bitcoins, the outlook for Bitcoin has dimmed, and its value has shrunk accordingly. Meanwhile, after the stock premium has disappeared, issuing new shares not only fails to bring new advantages but also dilutes equity value, and with Bitcoin prices hovering around the breakeven line, it is unlikely to provide sufficient psychological support</p>

<p>The price of Bitcoin once fell to $74,604, below the average cost of $76,037 for Strategy, the world's largest cryptocurrency asset reserve company, raising doubts about its coin-holding model. Strategy's stock price has dropped over 70% from its peak, but currently, there is no financial pressure. If the price of Bitcoin fails to rebound, the company's operational space will continue to shrink</p>

- The cryptocurrency market remains weak, with Bitcoin dropping to a low of $74,604, nearly 40% down from its peak of approximately $126,000 last October.  
- Major Bitcoin holder MicroStrategy has an average Bitcoin acquisition cost of $76,037, raising questions about their strategy as its stock price recently fell over 7% to $138.26.  
- Despite currently having $2.25 billion in cash reserves, the company faces pressure as Bitcoin's prospects dim, potentially limiting their operational space if prices don't rebound.

Stheadline

Invesco Galaxy Bitcoin ETF

Mara

Grayscale Bitcoin Miners ETF

Microstrategy Inc Pref Shares STRC 9.0 Perp

CleanSpark

Core Scientific, Inc.

ProShares Bitcoin Strategy ETF

MicroStrategy Pref Shares MSTR 10.0 Perp

Riot Platforms

Grayscale Bitcoin Premium Income ETF

Franklin Bitcoin ETF

Hut 8 Mining

Fidelity Wise Origin Bitcoin Fund - ETF

WisdomTree Bitcoin Fund

Bitwise Bitcoin ETF

VanEck Bitcoin ETF

CoinShares Bitcoin ETF

Coinbase

Bitdeer Tech

iShares Bitcoin Trust ETF

ARK 21Shares Bitcoin ETF

MicroStrategy Pref Shares MSTR 8.0 Perp

Strategy

Bitfarms Canada

Defiance Daily Target 2X Short MSTR ETF

T-REX 2X Inverse MSTR Daily Target ETF

XL2CSOPMSTR

XI2CSOPMSTR

Block

Bitcoin once dropped to $74,600, falling below the Strategy cost price, raising concerns that the "coin-holding stock model" may be over