Crypto

Metaplanet sells 10,000 bitcoins and buys back 11,000 in higher-priced move

Companies that pledged to hold bitcoin for the long term are moving to secure cash for fundraising and debt repayment. Japan-based bitcoin reserve and management firm Metaplanet sold 10,000 bitcoins while pursuing a credit rating, then repurchased 11,000 at a higher price. Strategy is also building billions of dollars in cash-like funds to prepare for dividends and interest payments. A shared challenge is that keeping bitcoin often requires cash other than bitcoin.

Crypto

Strategy holds 844,447 bitcoin but faces risks if funding dries up

An analysis says Strategy’s bitcoin accumulation strategy is driven more by its access to capital markets than by bitcoin’s price. The company is estimated to face about $1.76 billion a year in dividend and interest costs, which could become hard to cover without new funding unless it sells bitcoin. Researchers highlighted structural risks tied to about $22 billion in debt and preferred claims and said key indicators include preferred share prices and liquid assets.