Strategy sold BTC, reducing extreme risks for both the market and itself in the short term. For two consecutive weeks, Strategy sold BTC, with 1,690 BTC sold in the second week, generating approximately $109 million to repurchase preferred shares. The company also sold about $653 million in common stock, raising its USD reserves to $4.65 billion. How were the risks reduced? - Strategy converted potential future forced selling into manageable active selling now. - The discounted $4.65 billion cash reserve increases buffers for dividends and interest payments. - Repurchasing discounted preferred shares reduces the burden of high-cost capital. - Additionally, common stock financing is still ongoing, indicating the company hasn’t fully relied on BTC to maintain cash flow. In fact, theoretically, the biggest risk to BTC right now comes from Strategy. Contrary to intuition, the market always prefers prolonged pain over short-term pain. Theoretically, selling BTC is a script that was bound to play out sooner or later. Moreover, if Strategy were to trigger forced liquidation due to a debt crisis, it would cause a cliff-like crash in the market, potentially the most violent black swan event in BTC’s entire history.