K33 Highlights Structural Risks in Strategy's Bitcoin Acquisition Approach

Research firm K33 has raised concerns about Strategy's increasing reliance on selling its STRC perpetual preferred shares to fund Bitcoin acquisitions. According to ChainCatcher, this approach introduces structural risks linked to market sentiment and pricing dynamics. On Monday, Strategy acquired $1.57 billion worth of Bitcoin, with approximately $1.18 billion sourced from the market sale of STRC, while the sale of Class A common stock accounted for $396 million. K33 noted that this strategy requires STRC's price to remain near its target and Strategy's equity trading price to exceed its net asset value. These conditions are largely influenced by market sentiment and could deteriorate simultaneously during market downturns.