Analysts pushed back on “death spiral” concerns, citing roughly $1 billion in cash, about $55 billion in Bitcoin holdings and STRC’s floating-yield structure.
Benchmark and TD Cowen maintained buy ratings on Strategy as analysts rejected market fears that the company could face a “death spiral” sell-off when Bitcoin briefly dropped to about $60,000. Benchmark pointed to roughly $1 billion in cash reserves, about $55 billion in Bitcoin holdings and the structure of STRC, which targets a $100 price and about 11.5% floating annualized yield. Critics had warned that, under extreme conditions, the setup could create a negative feedback loop.