Strategy Establishes $1.44B USD Reserve to Support Dividend Payments
As bitcoin, ethereum and other cryptocurrencies see major legal, institutional, and technological developments, the financial landscape continues to adapt. Stay up on the crypto news that matters with the "Crypto Currents" weekly from The Fly. Also, join us for your essential daily recap, every day at 2 PM ET on FlyCast radio.STRATEGY ESTABLISHES $1.44B U.S. DOLLAR RESERVE:Strategyannounced Monday theand updates to its assumptions underlying its previously issued forward guidance and bitcoin key performance indicator targets for the fiscal year ending December 31. Strategy announced that it has established a USD Reserve of $1.44B to support the payment of dividends on its preferred stock and interest on its outstanding indebtedness. The USD Reserve was funded using proceeds from the sale of shares of class A common stock under Strategy's at-the-market offering program. Strategy's current intention is to maintain a USD Reserve in an amount sufficient to fund at least twelve months of its dividends, and Strategy intends to strengthen the USD Reserve over time, with the goal of ultimately covering 24 months or more of its dividends."Establishing a USD Reserve to complement our BTC Reserve marks the next step in our evolution, and we believe it will better position us to navigate short-term market volatility while delivering on our vision of being the world's leading issuer of Digital Credit," said Michael Saylor, Founder and Executive Chairman.The company alsoto ($17.00)-$19.00 from a previous estimate of $80.00, which compared to analysts' estimates of $49.15. Strategy also guided to FY25 operating income loss of ($7B) to gain of $9.5B and FY25 net income loss of ($5.5B) to gain of $6.3B. The company also updated itswith the FY25 BTC Yield Target between 22% and 26% and the FY25 BTC Dollar Gain Target between $8.4B and $12.8B.Strategy also announced that during the period of November 17 to November 30, it acquiredat an average purchase price of $89,960 per bitcoin. As of November 30, the company's aggregate bitcoin holdings were 650,000 BTC, acquired for a total of $48.38B at an average price of $74,436 per bitcoin.Cantor Fitzgerald lowered the firm's price target on Strategyon the shares. It sees fears around the company as overblown. With 650,000 bitcoin priced at $92,600 each, Strategy has an estimated $155 per share of bitcoin on a fully adjusted share count basis, which also backs out the value of its preferreds, the analyst said. Cantor reduced Strategy's annual capital market proceeds from $22.5B to $7.8B and the stock's assumed net asset value at which it can raise those funds with the recent pullback in bitcoin prices. However, the firm believes Strategy's current share price to net asset value dynamic "gives shares positive convexity to bitcoin price appreciation." Cantor said fears around the company being forced to sell its bitcoin are not warranted. Strategy has enough cash to fund dividends for 21 months, and its bitcoin position, worth $60.7B, compares to its notional debt of $8.2B, the firm contended.CIRCLE INITIATED WITH UNDERPERFORM:Wolfe Research initiated coverage of Circle InternetwithCircle is the "undisputed leader" in globally regulated stablecoin, but the company now faces interest rate and competition headwinds, the analyst said. Meanwhile, the shares are still trading at a premium valuation, contended Wolfe.TRUMP MEDIA GROUP CRO STRATEGY NAMES CEO, CFO:Yorkville Acquisition Corp.announced Mondayin connection with the closing of the proposed business combination. The combination will result in the founding partners of Trump Media Group CRO Strategy, which include Trump Media & Technology Groupand Crypto.com, contributing assets to establish a digital asset treasury company focused on acquisition of the native cryptocurrency token of the Cronos ecosystem. Gutterman most recently headed Gryphon Digital Mining, where Salzman most recently served as CFO."CRO is a high-performance token, and Trump Media Group CRO Strategy, which will aggregate CRO, is poised to unlock significant value for shareholders," said Kevin McGurn, CEO of Yorkville Acquisition Corp. "To capitalize on this opportunity, we need strong strategic partners in the industry and an experienced management team. We already had the partners; now we've added the team."Yorkville Acquisition Corp. also announced Monday that the company hasof Form S-4 with the U.S. Securities and Exchange Commission.DEFI DEVELOPMENT PARTNERS WITH HARMONIC, PERENA:DeFi Development Corp.announced Monday it has begunacross its Solana validator operations. Harmonic introduces competition and choice into Solana's block-building pipeline. Instead of relying on a single builder, validators can select from multiple block candidates each slot. This improves revenue potential, strengthens decentralization, and gives operators more control over the types of order flow they accept. The company has already integrated Harmonic into its validator stack and expects to see measurable improvements in validator performance and revenue capture in the coming weeks.Additionally on Thursday, DeFi Development announcedThrough this partnership, DFDV will leverage its existing stablecoin reserves by minting Perena's USD STAR stablecoin, capturing attractive yield while preserving capital stability. By placing part of its stable reserves into USD STAR, DeFi Development expects to generate stablecoin-native yield, currently around 15% APY, serving as a new revenue stream. Earnings from this stablecoin yield will be used to cover operational expenses, facilitate share buybacks, and acquire additional SOL. This structure is designed to accelerate growth in the company's core metric, SOL Per Share, delivering long-term value to shareholders. As part of the partnership, DeFi Development also plans to participate in Perena's points program, which rewards users based on their USD STAR holdings and platform activity.CSLM DIGITAL ASSET, FIRST DIGITAL ENTER COMBINATION AGREEMENT:First Digital Group and CSLM Digital Asset Acquisition Corp IIIannounced Tuesday that they haveUpon completion, the combined company is expected to be publicly listed on a national securities exchange in the United States. At the center of First Digital's offering is FDUSD, a USD-denominated stablecoin fully backed by cash and cash equivalents held in a Hong Kong-registered, bankruptcy-remote trust structure.The companies said, "FDUSD has rapidly established itself as one of the most actively traded stablecoins on centralized exchanges, reaching more than $1B in market capitalization within its first four months and later surpassing a peak circulation of more than $4.4B as adoption accelerated. Supported by tier-1 exchange integrations and world-class liquidity partners, FDUSD has processed more than $2T in cumulative trading volume since launch, demonstrating deep liquidity and sustained demand across global markets. Fully backed by segregated reserves held with its licensed custodian affiliate and supported by independent monthly attestations and robust AML/KYC controls, FDUSD has become a trusted and scalable digital dollar for exchanges, institutional users, and on-chain payment applications."OTHER CRYPTO NEWS:Galaxyexpands intofor Liquid CollectiveBitmine ImmersionannouncesFigureannouncesIP StrategyannouncesSolmateto acquireCRYPTO STOCK PLAYS:Publicly traded companies in the space include Bit Digital, Coinbase, Core Scientific, Greenidge Generation, Mara Holdings, Strategy, Riot Platformsand TeraWulf.PRICE ACTION:As of time of writing, bitcoin stayed roughly flat this week at $91,042 in U.S. dollars, according to CoinDesk.
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MSTY Distributions Plummet, Investors Must Exercise Caution
- Dramatic Distribution Decline: MSTY's weekly distributions have plummeted from $4.42 monthly in 2024 to just $0.1549 today, highlighting the fragility of its income sources and prompting investors to reassess their strategies.
- Price Collapse Impact: MSTR's stock price has fallen approximately 75% over the past year, directly reducing MSTY's ability to distribute income, thereby increasing risk for investors, especially amid heightened market volatility.
- Yield Mechanism Analysis: MSTY employs a synthetic covered-call strategy by buying call options and selling put options to create a long position; however, MSTR's high volatility leads to unstable option premiums, affecting the sustainability of distributions.
- NAV Continues to Decline: MSTY's net asset value has dropped 31% year-to-date and approximately 70% over the past year, indicating that in a sustained market downturn, the fund's recovery potential is severely constrained, necessitating caution from investors regarding its income-generating capabilities.
Bitcoin Bear Market Deepens, Potential Drop to $10,000
- Bearish Market Outlook: Mike McGlone from Bloomberg Intelligence indicates that Bitcoin is in a 'severe bear market' and could drop to $10,000, reflecting a pessimistic market sentiment that investors need to navigate cautiously.
- Impact of Strategy Sale: Strategy Inc sold 3,588 Bitcoins for $216 million to fund dividends on its new preferred stock, which, while seen as pressure on Bitcoin, analysts believe the smooth market absorption indicates strong liquidity without significant adverse effects on Bitcoin.
- Market Structure Analysis: Analyst Dave Weisberger argues that the sale by Strategy did not directly impact Bitcoin, instead demonstrating market depth and liquidity, potentially providing support for Bitcoin lenders.
- Technical Warning Signs: McGlone emphasizes that Bitcoin's 200-day moving average near $75,000 is a critical sell level, suggesting that the market may face further downward pressure, urging investors to respect the bearish trend.
Bitmine Accelerates ETH Holdings to 4.8% of Total Supply
- Significant ETH Holdings: Bitmine currently holds 4.8% of the total ETH supply, approximately 120.7 million ETH, indicating its substantial position in the Ethereum market, which is likely to attract more investor interest.
- Rapid Growth: Over the past 12 months, Bitmine has achieved 95% of its 'Alchemy of 5%' goal, demonstrating its swift expansion in the Ethereum staking sector, which may further enhance its market share and influence.
- Listing Performance: Bitmine was included in the Russell 1000 Large-cap Index on June 26, 2026, increasing its visibility in capital markets and is expected to draw more institutional investor attention.
- Diversified Asset Portfolio: Bitmine's total asset value reaches $11.1 billion, including 5.74 million ETH tokens and $527 million in liquid assets, showcasing its diversified investment strategy across crypto assets and traditional securities.
Bitmine Holds 4.8% of Total ETH Supply
- Significant ETH Holdings: Bitmine currently holds 4,879,157 ETH, valued at approximately $8.8 billion at current prices, highlighting its crucial position in the Ethereum market and laying the groundwork for future investment growth.
- Massive Asset Value: Bitmine's total assets, including cryptocurrencies, liquid funds, and tradable securities, amount to $11.1 billion, comprising 5.74 million ETH and $527 million in liquid assets, reflecting its strong financial strength and market competitiveness.
- Institutional Investor Support: Bitmine has garnered backing from top institutional investors, including Cathie Wood of ARK and Pantera, aiming to achieve its long-term goal of holding 5% of total ETH, which not only enhances its market credibility but may also attract more investor attention.
- Inclusion in Russell 1000 Index: Bitmine was added to the Russell 1000 large-cap index on June 26, 2026, a move that boosts its market visibility and liquidity, potentially driving stock price increases and attracting more institutional investors.
Distressed Debt Funds Discuss Strategy's Preferred Share Exchange
- Preferred Share Exchange Talks: Distressed debt funds are in discussions with Moelis & Co. regarding a potential exchange of Strategy's (MSTR) preferred shares at a discounted price, aiming to improve investment returns amid a nearly 75% decline in stock price over the past year.
- Legal Framework Support: The exchange may be conducted under Section 3(a)(9), which allows companies to swap securities without formal SEC registration, thereby simplifying the transaction process and reducing compliance costs.
- Liquidity Enhancement Plan: Last week, Strategy announced plans to boost liquidity through bitcoin sales to pay dividends on preferred stock and interest on debt; if the swap is for common shares, it would alleviate the dividend burden and further optimize financial structure.
- Market Reaction: Strategy's stock rose 0.7% in after-hours trading, while its preferred shares showed mixed performance, with Strategy Stretch preferred up 0.7%, Strategy Strike preferred down 1.6%, and Strategy Strife preferred down 2.4%, indicating cautious optimism in the market regarding the exchange talks.
Michael Saylor Makes Significant Bitcoin Sale
- Major Bitcoin Transaction: Strategy (NASDAQ: MSTR) sold approximately 3,588 BTC for $216 million between June 29 and July 5, with proceeds allocated for preferred stock STRC distributions and replenishing USD reserves, indicating a significant shift from its previous 'never sell Bitcoin' stance, which may impact investor confidence.
- Mining Stocks Surge: On July 6, Bitcoin mining stocks saw notable increases, with IREN up 13.4% to around $44 and TeraWulf rising 11% to $23.5, reflecting market optimism regarding these companies' pivots towards AI, potentially providing new growth avenues amidst declining Bitcoin profits.
- AI Infrastructure Investment: TeraWulf signed a 20-year lease with Anthropic, expected to generate approximately $19 billion in contracted lease revenue at the Justified Data site in Kentucky, indicating a strategic shift for mining companies to diversify their business models in response to falling Bitcoin profit margins.
- Bitcoin Network Hashrate Changes: Bitcoin's hashrate has fallen about 11% year-to-date on average, with U.S. miners' market share decreasing by over 40 basis points, suggesting that mining companies may pivot to other markets to maintain competitiveness as profit margins compress.
MSTY Distributions Plummet, Investors Must Exercise Caution
- Dramatic Distribution Decline: MSTY's weekly distributions have plummeted from $4.42 monthly in 2024 to just $0.1549 today, highlighting the fragility of its income sources and prompting investors to reassess their strategies.
- Price Collapse Impact: MSTR's stock price has fallen approximately 75% over the past year, directly reducing MSTY's ability to distribute income, thereby increasing risk for investors, especially amid heightened market volatility.
- Yield Mechanism Analysis: MSTY employs a synthetic covered-call strategy by buying call options and selling put options to create a long position; however, MSTR's high volatility leads to unstable option premiums, affecting the sustainability of distributions.
- NAV Continues to Decline: MSTY's net asset value has dropped 31% year-to-date and approximately 70% over the past year, indicating that in a sustained market downturn, the fund's recovery potential is severely constrained, necessitating caution from investors regarding its income-generating capabilities.
Bitcoin Bear Market Deepens, Potential Drop to $10,000
- Bearish Market Outlook: Mike McGlone from Bloomberg Intelligence indicates that Bitcoin is in a 'severe bear market' and could drop to $10,000, reflecting a pessimistic market sentiment that investors need to navigate cautiously.
- Impact of Strategy Sale: Strategy Inc sold 3,588 Bitcoins for $216 million to fund dividends on its new preferred stock, which, while seen as pressure on Bitcoin, analysts believe the smooth market absorption indicates strong liquidity without significant adverse effects on Bitcoin.
- Market Structure Analysis: Analyst Dave Weisberger argues that the sale by Strategy did not directly impact Bitcoin, instead demonstrating market depth and liquidity, potentially providing support for Bitcoin lenders.
- Technical Warning Signs: McGlone emphasizes that Bitcoin's 200-day moving average near $75,000 is a critical sell level, suggesting that the market may face further downward pressure, urging investors to respect the bearish trend.
Bitmine Accelerates ETH Holdings to 4.8% of Total Supply
- Significant ETH Holdings: Bitmine currently holds 4.8% of the total ETH supply, approximately 120.7 million ETH, indicating its substantial position in the Ethereum market, which is likely to attract more investor interest.
- Rapid Growth: Over the past 12 months, Bitmine has achieved 95% of its 'Alchemy of 5%' goal, demonstrating its swift expansion in the Ethereum staking sector, which may further enhance its market share and influence.
- Listing Performance: Bitmine was included in the Russell 1000 Large-cap Index on June 26, 2026, increasing its visibility in capital markets and is expected to draw more institutional investor attention.
- Diversified Asset Portfolio: Bitmine's total asset value reaches $11.1 billion, including 5.74 million ETH tokens and $527 million in liquid assets, showcasing its diversified investment strategy across crypto assets and traditional securities.
Bitmine Holds 4.8% of Total ETH Supply
- Significant ETH Holdings: Bitmine currently holds 4,879,157 ETH, valued at approximately $8.8 billion at current prices, highlighting its crucial position in the Ethereum market and laying the groundwork for future investment growth.
- Massive Asset Value: Bitmine's total assets, including cryptocurrencies, liquid funds, and tradable securities, amount to $11.1 billion, comprising 5.74 million ETH and $527 million in liquid assets, reflecting its strong financial strength and market competitiveness.
- Institutional Investor Support: Bitmine has garnered backing from top institutional investors, including Cathie Wood of ARK and Pantera, aiming to achieve its long-term goal of holding 5% of total ETH, which not only enhances its market credibility but may also attract more investor attention.
- Inclusion in Russell 1000 Index: Bitmine was added to the Russell 1000 large-cap index on June 26, 2026, a move that boosts its market visibility and liquidity, potentially driving stock price increases and attracting more institutional investors.
Distressed Debt Funds Discuss Strategy's Preferred Share Exchange
- Preferred Share Exchange Talks: Distressed debt funds are in discussions with Moelis & Co. regarding a potential exchange of Strategy's (MSTR) preferred shares at a discounted price, aiming to improve investment returns amid a nearly 75% decline in stock price over the past year.
- Legal Framework Support: The exchange may be conducted under Section 3(a)(9), which allows companies to swap securities without formal SEC registration, thereby simplifying the transaction process and reducing compliance costs.
- Liquidity Enhancement Plan: Last week, Strategy announced plans to boost liquidity through bitcoin sales to pay dividends on preferred stock and interest on debt; if the swap is for common shares, it would alleviate the dividend burden and further optimize financial structure.
- Market Reaction: Strategy's stock rose 0.7% in after-hours trading, while its preferred shares showed mixed performance, with Strategy Stretch preferred up 0.7%, Strategy Strike preferred down 1.6%, and Strategy Strife preferred down 2.4%, indicating cautious optimism in the market regarding the exchange talks.
Michael Saylor Makes Significant Bitcoin Sale
- Major Bitcoin Transaction: Strategy (NASDAQ: MSTR) sold approximately 3,588 BTC for $216 million between June 29 and July 5, with proceeds allocated for preferred stock STRC distributions and replenishing USD reserves, indicating a significant shift from its previous 'never sell Bitcoin' stance, which may impact investor confidence.
- Mining Stocks Surge: On July 6, Bitcoin mining stocks saw notable increases, with IREN up 13.4% to around $44 and TeraWulf rising 11% to $23.5, reflecting market optimism regarding these companies' pivots towards AI, potentially providing new growth avenues amidst declining Bitcoin profits.
- AI Infrastructure Investment: TeraWulf signed a 20-year lease with Anthropic, expected to generate approximately $19 billion in contracted lease revenue at the Justified Data site in Kentucky, indicating a strategic shift for mining companies to diversify their business models in response to falling Bitcoin profit margins.
- Bitcoin Network Hashrate Changes: Bitcoin's hashrate has fallen about 11% year-to-date on average, with U.S. miners' market share decreasing by over 40 basis points, suggesting that mining companies may pivot to other markets to maintain competitiveness as profit margins compress.
