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Major Bitcoin Mining Pools Join Stratum V2 Collaborative Organization

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Major Bitcoin Mining Pools Join Stratum V2 Collaborative Organization

Seven major Bitcoin mining pools have joined the Stratum V2 working group to develop an industry-wide open standard protocol used by mining pool operators to communicate with individual miners in their pools.

AntPool, Block Inc, F2Pool, Foundry, MARA Foundation, SpiderPool and DMND all joined the working group to collaborate on the mining pool communication standard, which could reduce the time it takes pools to successfully mine blocks, according to an announcement from Stratum V2.

“Bitcoin mining is competitive and fragmented by design. It is a race for efficiency where a millisecond can determine whether a miner wins a block or loses to a competitor,” the announcement said.

Foundry and AntPool are the two largest Bitcoin mining pools by hashrate, the total amount of computing power deployed by miners to secure the Bitcoin network.

Foundry controls nearly 30% of the global mining pool hashrate, and AntPool controls about 17.7%, according to data from Hashrate Index.

Mining pools broken down by the share of global Bitcoin mining hashrate they control. Source: Hashrate Index

Developing an open standard for Bitcoin mining pools that is not controlled by any one mining pool operator helps decentralize the mining industry, which has become increasingly centralized, while also giving miners greater flexibility in choosing block templates. 

Related: Tether launches open-source mining framework to unify Bitcoin infrastructure

Bitcoin mining difficulty is set to rise in the next adjustment, while energy costs soar

The Bitcoin mining difficulty, the relative challenge of adding new blocks to the ledger, is projected to rise again in the next difficulty adjustment in May.

“The next Bitcoin difficulty adjustment is estimated to take place on May 15, 2026, 5:58 PM UTC, increasing the Bitcoin mining difficulty from 132.47 T to 135.64 T,” according to CoinWarz.

Bitcoin mining difficulty continues to increase over the long term. Source: CoinWarz

Rising network difficulty and increasing energy costs are placing additional pressure on the already competitive Bitcoin mining industry.

Up to 20% of Bitcoin miners are unprofitable under current crypto market and economic conditions, according to asset manager CoinShares.

Hashprice, a critical metric for miner profitability, fell to levels between hit $36 and $38/Petahash-seconds per day, which is at near or at breakeven profit levels for some miners, CoinShares said.

Magazine: Bitcoin may take 7 years to upgrade to post-quantum: BIP-360 co-author

Is XRP Repeating A Setup That Once Led To 126% Rally? This Analyst Thinks So

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Is XRP Repeating A Setup That Once Led To 126% Rally? This Analyst Thinks So

Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

The altcoin market has been one of the major losers in this bear market, with large-cap cryptocurrencies like XRP, BNB, and Solana taking a significant share of the losses. In fact, TradingView data shows that the TOTAL3 index (representing the crypto market capitalization, excluding BTC, ETH, and stablecoins) has fallen by more than $544 billion during this bear market correction.

As highlighted by a popular pseudonymous analyst, this dynamic seems to be changing, with capital repositioning since early February (and the TOTAL3 market cap surging by about $125 billion in that period). According to the crypto pundit, XRP is one of the altcoins to keep an eye on during the ongoing market shift.

Is A Return To $3.12 Possible For XRP In 2026?

In a Quicktake post on the CryptoQuant platform, crypto analyst Darkfost explained that, despite the improving dynamics, several investors are still betting against the altcoin market at the moment. This trend is evident in the XRP Funding Rates metric, which is currently experiencing its longest and most negative run in years.

The Funding Rates metric measures the periodic fee exchanged between traders in the derivatives market for a particular cryptocurrency (XRP, in this case). A negative funding rate suggests that short traders are dominating the market and betting against the asset’s price, capturing an overall bearish sentiment.

Darkfost wrote in the Quicktake post:

Here, funding rates are aggregated over a 30 day period in order to better capture the prevailing sentiment among derivatives traders.

Darkfost revealed that the XRP Funding Rates on Binance, the world’s largest cryptocurrency exchange by trading volume, have remained negative for the past three months. This has been the case despite the altcoin’s price rising by more than 27% over the same period.

XRP

Source: CryptoQuant

According to the on-chain analyst, a strong setup like this, especially after such a deep correction as the 50% drop in 2026 Q1, could be a signal that a potential reversal is on the horizon for XRP. Darkfost highlighted that this scenario has played out in the past (as recently as April 2025), when the altcoin’s price fell to around $1.95, before a bullish recovery that sparked a 126% rally.

If history were to repeat itself, the current Funding Rates setup could see XRP’s value more than double over the next few months. A 126% move from the current price point would see the altcoin reclaim the $3.2 mark.

XRP Price At A Glance

As of this writing, the price of XRP is around $1.42, with no significant movement in the past 24 hours. According to data from TradingView, the cryptocurrency is up by more than 2% in the past seven days.

XRP

The price of XRP on the daily timeframe | Source: XRPUSDT chart on TradingView

Featured image from iStock, chart from TradingView

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Top News in Global Payments Infrastructure: Payward to Acquire Reap to Expand B2B Offering

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Top News in Global Payments Infrastructure: Payward to Acquire Reap to Expand B2B Offering

Payward, Inc. is a unified financial infrastructure platform that powers a family of products advancing an open, global financial system. Built on a single shared architecture, Payward enables customers to hold, trade, earn, pay, and invest across asset classes without friction or fragmentation.

At its core, Payward provides the infrastructure layer behind Kraken and a growing set of purpose-built products, including NinjaTrader, Breakout, xStocks, Bitnomial, and CF Benchmarks.

Three days ago, it announced it has entered into a definitive agreement to acquire Reap Technologies Holdings Limited (“Reap”), a leading stablecoin-native, card issuing and payments infrastructure company enabling global money movement, for up to $600 million payable in a mix of cash and Payward stock, in a transaction that values Payward’s equity at $20 billion. The acquisition expands Payward Services, the company’s B2B infrastructure platform, unlocking globally regulated infrastructure for card issuance and stablecoin payments. Acquisition will extend Payward’s globally regulated superinfrastructure into the global cards and payments space

“Finance is moving in one direction. Continuous markets. Programmable money. Autonomous execution. Stablecoins are the settlement substrate. AI agents are the new participants. We see the inflection on our own platform: Krak shipped to 110 countries on Day 1, xStocks crossed $29 billion in cumulative volume in its first year, 1,900 B2B partners run on Payward’s shared infrastructure today,” said Arjun Sethi, Co-CEO of Payward. “Reap is the payments layer for what comes next. Card networks, banking rails, and blockchains on a single API, settling in stablecoins. The infrastructure for that world has to be open, regulated, and operational at global scale on Day 1. The next financial product will not be assembled. It will be deployed.”

“Stablecoins in card payments are one of the largest real world applications today and Reap is proud to be leading the way. With the global stablecoin and crypto card market now exceeding $18 billion annually, Reap nearly tripled revenue and volumes in 2025, and expanded our licensing footprint from Asia to South America,” said Daren Guo, Co-Founder and CEO of Reap. “What’s next is for us to connect stablecoin cards and payments to a full suite of crypto-native financial services to power scale, regulatory reach, and distribution for our clients. Joining Payward was a natural step to accelerate the future of finance and build category-disrupting offerings in web3, agentic commerce and more.”

The acquisition creates a complementary global regulatory footprint to drive the expansion of both businesses. Reap’s existing licenses accelerate Payward’s expansion across APAC and the Americas, while Payward’s EU and US licenses open new corridors for Reap in Europe and US markets. Together, the two businesses are positioned to extend stablecoin-powered payments infrastructure into high-growth markets across MENA and Latin America.

Reap’s card issuing and cross-border payment capabilities will be made available to Payward Services partners, alongside access to Payward’s global liquidity, custody, and settlement infrastructure. Reap will continue to operate as a standalone platform within the Payward ecosystem, maintaining its leadership team led by Daren Guo, along with its brand and go-to-market approach, while benefiting from Payward’s global infrastructure and regulatory footprint.

The transaction is subject to customary closing conditions and regulatory approvals and is expected to close in the second half of 2026.

Trump Media’s Crypto Bet Implodes With Massive $406M Quarterly Loss

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Trump Media’s Crypto Bet Implodes With Massive $406M Quarterly Loss

Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

Trump Media & Technology Group’s stock now trades around $8.93. That number tells a story on its own. The parent company of Truth Social once peaked at $97.50 a share back in early 2022, and it has shed more than 90% of its value since then.

CEO Devin Nunes stepped down on April 22, adding leadership uncertainty to a company already under financial pressure.

A Bad Deal Gets Worse

756 million Cronos tokens sit on Trump Media’s books, purchased for close to $114 million as part of a deal with Crypto.com. By March 31, those tokens were valued at just $53 million — less than half what the company paid.

That loss compounded an already bruising quarter driven largely by Bitcoin purchases made near last summer’s market peak. The company bought roughly 9,500 Bitcoin at an average cost of around $108,519 per coin.

At quarter-end, the 9,542 Bitcoin it held carried a cost basis of $1.13 billion but a fair value of only $647 million — a gap of nearly $500 million. Bitcoin has since climbed back above $80,000, pushing the position’s value closer to $770 million.

WLFIUSD trading at $0.06 on the 24-hour chart: TradingView

The total damage for the first quarter of 2026 came to $406 million in net losses, up sharply from $31.7 million during the same period a year earlier.

According to a filing with the Securities and Exchange Commission, nearly $370 million of that figure came from unrealized losses on digital assets and equity holdings — meaning the company has not sold its positions at a loss, but the decline in market value still hit the books hard. An additional $108 million in investment losses was tied mostly to equity securities.

Image: Technext

Revenue Barely Moves

While crypto losses dominated the quarter, Trump Media’s core media business generated just $871,200 in revenue — a 6% increase from $821,200 in the first quarter of 2025.

That figure includes $810,100 in media revenue and $61,100 in management fees tied to Truth.Fi ETF offerings. For a publicly traded company sitting on over $2 billion in total financial assets, the revenue line is thin.

The company did manage to generate nearly $18 million in operating cash flow during the quarter, helped by selling options on its pledged Bitcoin holdings.

Of its total Bitcoin position, 4,260 BTC has been pledged as collateral for convertible notes, and another 2,000 BTC is held against covered call options as a hedge.

Featured image from Thomas Fuller/SOPA Images/LightRocket via Getty Images, chart from TradingView

Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.

Santiment Flags Risk As Crypto Bullish Talk Spikes While BTC Holds Near $80K

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Santiment Flags Risk As Crypto Bullish Talk Spikes While BTC Holds Near $80K

Crypto bullish chatter on social media has surged to levels that could signal the current market uptrend may be short-lived, according to crypto sentiment platform Santiment.

“Rallies that arrive with a confident crowd tend to fade faster than those climbing a ‘wall of worry’,” Santiment said in a report published on Saturday. “Those climbing skepticism tend to extend,” Santiment added.

Santiment said the ratio of bullish to bearish crypto-related comments on social media is currently around 1.5:1, based on a sample of active crypto accounts tracked across multiple platforms. It comes as Bitcoin (BTC) has increased 11.50% over the past 30 days, trading at $80,628 at the time of publication, according to CoinMarketCap.

A confident market tends to see rallies fade fast

Market participants often watch overall crypto sentiment to gauge whether it may be a good time to buy or sell, or to look for clues about where the market could be headed in the coming weeks.

The Crypto Fear & Greed Index, which tracks overall crypto market sentiment, posted a “Neutral” reading of 47 on Sunday after slipping back into “Fear” territory on Thursday, signaling investors are cautious about the crypto market.

The Crypto Fear & Greed Index fell to a “Fear” reading of 38 on Friday. Source: alternative.me

Santiment said the best scenario for Bitcoin right now is not to break out further. “The team’s ideal setup is a pullback to $75k that flushes late longs, resets sentiment, and builds a healthier base,” the platform said.

Bitcoin supply on exchanges rises

Meanwhile, Santiment pointed to a recent increase in Bitcoin supply on crypto exchanges, potentially signaling that holders are viewing current price levels as an opportunity to take profits.

Related: Strike CEO Jack Mallers dismisses idea that Wall Street threatens Bitcoin

“On-chain activity is broadly quiet, but Bitcoin supply on exchanges has ticked up over the past five days after an extended decline. The reversal could indicate early profit-taking,” Santiment said. Analysts are divided on whether it will fall into that price range or continue higher.

MN Trading Capital founder Michael van de Poppe said he “wouldn’t be surprised that we retest lower at $70-75K before we continue to run.” 

Crypto analyst Matthew Hyland said that Bitcoin is “likely” to reach between $87,000 and $95,000 before June.

Magazine: XRP ‘probably going to $12,’ Bitcoin ETFs add $1B: Market Moves

Policy at Consensus Miami: State of Crypto

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Policy at Consensus Miami: State of Crypto

White House adviser Patrick Witt said it’s possible the Clarity Act becomes law by July 4 while Senator Kirsten Gillibrand pushed for an ethics provision in the market structure bill. Consensus Miami 2026 wrapped up with a fiery debate on the role of prediction markets, and a lot otherwise happened at our first conference in the Sunshine State.

CoinDesk also released the results of a survey it commissioned of 1,000 registered voters on their views toward crypto heading into the 2026 election.

PS: I’ll be at the Bermuda Digital Finance Forum next week. Let’s catch up if you’re there.

You’re reading State of Crypto, a CoinDesk newsletter looking at the intersection of cryptocurrency and government. Click here to sign up for future editions.

The narrative

White House Executive Director of the President’s Council on Digital Assets Patrick Witt told the audience at Consensus Miami this week that he believed it was possible to have President Donald Trump sign the Clarity Act into law by July 4. The timeline would require a markup this month (which seems very possible), four weeks for the Senate to merge the Banking and Agriculture bills (technically possible), a few weeks for reconciliation with the House (also technically possible) and the House vote (will depend on the House) and finally, the part where the president signs the bill.

Beyond Witt, we heard from various industry participants and policymakers at Consensus Miami. Catch up below.

Why it matters

Look, if you’ve read this newsletter for more than a few weeks, you know the Clarity Act has taken center stage for the last several months. Maybe it’ll happen and we can move on to other things. Maybe not. But there does seem to be more momentum now than there has been in weeks, and so we’ll see — I imagine quite soon — what that means.

Breaking it down

Consensus this year had a number of other sessions with lawmakers, policymakers and lawyers weighing in on everything from what the Clarity Act needs (ethics provisions, per Senator Kirsten Gillibrand) to whether or not prediction markets are gambling (we did not reach a conclusion but it was an excellent debate!).

Some highlights:

CoinDesk also released the results of a survey of registered voters it commissioned from April 21-27. We found that while voters generally don’t care about crypto leading into the 2026 midterm election when facing other issues like the economy and healthcare. This likely isn’t a surprise to anyone.

Voters did overwhelmingly say that they did not want senior government officials to have ties to crypto business interests, a majority said they did not feel comfortable with President Donald Trump’s administration overseeing crypto (though just 17% of voters said they knew he and his family had co-founded World Liberty Financial). Voters also overwhelmingly favored banks to crypto projects when asked which was more likely to bring them financial services.

You can read our articles on this data below:

Crypto is at bottom of U.S. voters’ priorities heading into elections, CoinDesk survey shows

U.S. voters don’t trust Trump administration to oversee crypto sector, CoinDesk poll finds

Americans still prefer banks over crypto for financial access, CoinDesk’s survey shows

Thursday

  • 14:30 UTC (10:30 a.m. ET) The Senate Banking Committee plans to hold a markup hearing to advance the Clarity Act.

If you’ve got thoughts or questions on what I should discuss next week or any other feedback you’d like to share, feel free to email me at nik@coindesk.com or find me on Bluesky @nikhileshde.bsky.social.

You can also join the group conversation on Telegram.

See ya’ll next week!

Strategy’s Michael Saylor Signals Impending BTC Buy

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Strategy’s Michael Saylor Signals Impending BTC Buy

Michael Saylor, co-founder of Strategy, signaled that the Bitcoin treasury company will resume its BTC purchases this week, following an earnings call on Tuesday, during which he said the company may periodically sell portions of its treasury.

“Back to work, BTC,” Saylor said in an X post on Sunday, messaging that has previously preceded a BTC purchase, which typically the day after his posts.

The company last purchased BTC on April 27, buying 3,273 coins for about $255 million, which brought its total holdings to 818,334 BTC. Those holdings were worth about $61.8 billion, according to Strategy’s website at the time of publication.

Strategy’s history of Bitcoin purchases since 2020. Source: SaylorTracker.com

The company paused its BTC buying streak for one week ahead of Tuesday’s first quarter 2026 earnings call, in which Saylor said that the company could sell portions of its Bitcoin holdings periodically to pay dividends to holders of its credit instruments.

The announcement appeared to contradict the company’s previous stance of never selling BTC, and the sales could weigh on Bitcoin’s market price by introducing new selling pressure, critics of the move say.

Related: Bitcoin’s recent rally is largely fueled by Strategy purchases: Bitwise’s Hougan

Strategy CEO says dividend-funding sale could “inoculate” the market

“We’ll probably sell some Bitcoin to fund a dividend, just to inoculate the market, just to send the message that we did it,” Saylor said during Strategy’s Q1 earnings call.

The announcement drew mixed reactions from the Bitcoin community, with some, like Strategy investor Adam Livingston, arguing that periodic sales will be accretive for the company’s treasury, allowing it to finance the purchase of more BTC in the future.

Strategy’s Bitcoin per share since 2020, measured in sats, the base unit of Bitcoin. Source: SaylorTracker.com

Bitcoin advocate Samson Mow said Strategy’s ability to sell BTC gives it optionality and greater room to maneuver in the financial markets.

Others social media sentiment posited that Strategy’s Bitcoin sales and credit instruments will create a “doom loop” that suppresses the spot market price of BTC.

Strategy CEO Phong Le clarified that the company would only sell BTC in specific instances, including paying dividend yields and deferring taxes, and that neither its sales nor purchases should affect Bitcoin’s market price.

Bitcoin’s average daily trading volume of more than $60 billion could easily absorb Strategy’s $1.5 billion in annual dividend payments owed to holders of its corporate credit products, he said.

“I don’t think we’re driving the price up or down,” Le told CNBC, adding that the company owns about 4% of the total BTC supply. 

Magazine: Big Questions: Can Bitcoin save you from the dreaded Cantillon Effect?

Bitcoin Price May Dip Toward $70K as Fed Estimates Hotter CPI Print

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Bitcoin Price May Dip Toward $70K as Fed Estimates Hotter CPI Print

Bitcoin (BTC) may head into next week’s US inflation report with less support than it had during the last two CPI releases, raising the risk of a pullback toward $70,000.

Key takeaways:

  • Cleveland Federal Reserve nowcast projects April headline CPI to rise to 3.56% year over year.
  • BTC’s rising wedge pattern could trigger a decline toward $70,000

Fed estimates 0.26% rise in headline inflation

The Cleveland Fed’s latest inflation nowcast estimates April CPI at 3.56% year over year, up from 3.3% in March.

Year-over-year inflation expectations for April and May. Source: Cleveland Fed

It expects monthly CPI at 0.45%, down from 0.9%, while core CPI is projected at 2.56% year over year and 0.21% month over month, compared with 2.6% and 0.2% previously. The official April CPI report is due on May 12.

That keeps the inflation picture mixed. Headline CPI is expected to reaccelerate, even if the monthly pace slows and core inflation stays mostly stable.

For risk assets, that is not an ideal setup. A firmer annual CPI reading can still reinforce the view that the Fed has little room to cut rates quickly, which tends to pressure speculative trades such as Bitcoin.

Target rate probabilities for the December Fed meeting. Source: CME

Nonetheless, Bitcoin has avoided deeper declines despite the recent hot CPI prints.

For instance, BTC price rallied by over 15% after the March CPI report showed headline inflation rising to 3.3% from 2.4% in February.

One reason is that institutional buyers absorbed more than 500% of the newly mined Bitcoin supply, with Strategy accounting for a large share of that buying.

BTC/USD daily chart vs. institutional buying market cap. Source: Capriole Investments

That support looks weaker now. Strategy has paused its BTC purchases, while its STRC preferred stock continues to trade below its $100 par value.

When STRC trades below par, issuing new shares becomes less efficient, limiting Strategy’s ability to raise fresh capital for more Bitcoin buys.

Strategy’s weekly Bitcoin buying estimates. Source: STRC.LIVE

That weakening support may leave Bitcoin more exposed to a different CPI reaction pattern this time.

In a Sunday post, analyst Killa said larger players may start de-risking around the inflation release, pointing to a similar pattern of caution around CPI events in 2025.

BTC/USD performance after CPI releases. Source: TradingView/Killa

“Key level to hold is the 78.6K weekly open, if lost, 74–75K is the next downside target,” he said, adding:

“I would watch for liquidity sweeps around this pivot to signal the next move.”

BTC wedge hints at deeper decline toward $70,000

From a technical standpoint, Bitcoin is printing a classic rising wedge pattern on its daily charts.

A rising wedge is considered a bearish reversal setup that typically resolves when the price breaks below its lower trend line and falls by as much as the structure’s maximum height.

BTC/USD daily chart. Source: TradingView

As of Sunday, BTC was rising toward the wedge’s apex point, where its two trendlines converge, at around $84,000. A breakdown from that level may result in a decline toward the wedge’s measured downside target near $70,000.

Related: Bitcoin profit-taking may ‘accelerate’ as price hits 3-month high: Analyst

Conversely, a break above the apex point, which also coincides with the 200-day exponential moving average (200-day EMA, the blue line), may invalidate the bearish setup altogether.

In that scenario, the next potential upside target sits in the $90,000–$95,000 range.

Will ETH Price Decline More in 2026?

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Will ETH Price Decline More in 2026?

Ethereum’s native token, Ether (ETH), has fallen more than 35% against Bitcoin (BTC) over the past year, and the downtrend may still have further to go.

Key takeaways:

  • ETH may plunge another 40% as it mirrors the 2025 bear trend setup.
  • Rising Ether reserves on Binance, even as Bitcoin reserves decline, add to the case for further ETH downside.

ETH risks 40% decline after topping near multi-year trend line

ETH/BTC remains stuck below a multi-year descending trend line that has capped every breakout attempt since 2022, including one that preceded the nearly 70% decline between 2024 and 2025.

ETH/BTC monthly chart. Source: TradingView

A similar setup now appears to be taking shape again.

After retesting the same trend line in August 2025, ETH/BTC was rejected near a confluence of resistance that included the 0.382 Fibonacci retracement level and the 50-month exponential moving average (50-month EMA, red).

The pair has since turned lower and slipped back below its 20-month EMA (green) support near 0.034 BTC, a sign that sellers continue to dominate the trend.

The next major downside target for 2026 comes in around 0.0176 BTC if the weakness persists. This level, down about 40% from current rates, aligns with the 2020 cycle bottom.

Exchange reserves highlight ETH-BTC divergence

Exchange data points to persistent sell-side risk for Ether.

As of May, ETH reserves on Binance, the world’s largest crypto exchange by volume, had climbed to 3.62 million ETH, accounting for roughly 24.6% of all Ether held across exchanges, according to data resource CryptoQuant.

Ethereum reserves on Binance. Source: CryptoQuant

In comparison, Bitcoin reserves on Binance have fallen.

Bitcoin reserves on Binance. Source: CryptoQuant

Rising exchange balances usually signal that more tokens are available for sale, which can weigh on price when demand is not strong enough to absorb the added supply.

Falling reserves, on the other hand, often suggest coins are being moved off exchanges for longer-term holding.

In that sense, Binance reserve trends reinforce the broader market picture: Ether is facing relatively higher available supply, while Bitcoin is showing signs of tighter exchange-side liquidity.

Related: Four signs that show Ethereum’s rally is exhausted at $2.4K

Ethereum’s weakness reflects a broader shift in fundamentals. For years, Ether has lagged behind Bitcoin in part because Ethereum’s “ultrasound money” narrative has lost momentum.

BTC, on the other hand, continues to draw strength from corporate accumulation led by firms like Strategy and its growing integration into Wall Street portfolios.

Strategy CEO Highlights Scenarios Where Company Would Sell Bitcoin — Report

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Strategy CEO Highlights Scenarios Where Company Would Sell Bitcoin — Report

Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

Strategy CEO Phong Le has highlighted scenarios in which the company would offload some of its Bitcoin holdings. This explanation follows the treasury firm’s chairman, Michael Saylor, hinting at the possibility of strategically selling portions of its BTC over the past week.

Why Strategy Could Shed Some Of Its Bitcoin Holdings

In an interview with CNBC, Le analyzed the conditions under which Strategy could sell some of its Bitcoin holdings. While this move would be in stark contrast to the firm’s “Never Sell” strategy, the CEO believes a change in philosophy might be necessary given current market conditions.

The CEO mentioned that the company could sell some of its BTC to finance the payment of the 11.5% dividend yield on its Perpetual Preferred Stock (STRC). Le said that Strategy would sell a portion of its BTC to cover the dividend if it increases shareholder value (defined as a rise in the “Bitcoin per share”).

Bitcoin

Source: @phongle on X

Le said in the interview:

I believe in math over ideology, and at the point where selling Bitcoin versus selling equity to pay a dividend is better for our Bitcoin per share, and for our common shareholders, we will do it.

Strategy’s CEO further explained that BTC sales are accretive to shareholder value when the company’s book value is below market value, or vice versa. Le also mentioned the option to sell Bitcoin to capture deferred tax gains (and losses, as in its current case).

As of press time, Strategy is the largest corporate holder of Bitcoin, with about 818,334 BTC (approximately 4% of the cryptocurrency’s supply) on its books. With more than $1.5 billion in annual dividend obligations, Le suggested that its $65 billion BTC holdings are more than enough to cover these payments.

How Could Strategy’s Sales Affect Bitcoin Price?

As expected, the idea that the largest corporate holder of Bitcoin would sell its holdings to meet obligations has not been well received. However, the Strategy CEO believes that the premier cryptocurrency is liquid enough to withstand any major sales by his firm.

In Le’s own words, selling in the open market to fund a $1.5 billion dividend payment is a drop in the ocean of Bitcoin’s daily trading volume of over $60 billion. While admitting that Strategy is a significant player in the market, Le does not believe his firm’s activity has any major influence on price (considering how liquid the market is).

As of this writing, BTC is valued at around $80,840, reflecting a 0.5% price increase in the past 24 hours.

Bitcoin

The price of BTC on the daily timeframe | Source: BTCUSDT chart on TradingView

Featured image from Michael Saylor/X, chart from TradingView

Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.

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