What did @ Taylor do last week in the face of difficulties? Is it consistent with my prediction? Is it worth buying hidden topic preferred stocks?? History is always astonishingly similar, and Strategy has once again taken defensive action. I am glad that my prediction was correct. After the latest announcement was released, Strategy basically used almost all of the methods I organized over the weekend. The most significant change is that Strategy's focus has shifted from continuing to unconditionally buy BTC to first stabilizing financing and USD cash payment capabilities. What did Strategy do last week. From June 22nd to June 28th, Strategy sold 12669017 shares of MSTR through a common stock ATM, receiving approximately $1.1524 billion in net funds. The money from this ATM was not used to continue buying BTC, and there was no financing through preferred stock. Only the lowest risk common stock ATM was sold, and all the funds raised were used as US dollar reserves, totaling $2.55 billion. This represents the dilution of ordinary shareholders, resulting in an increase in the company's US dollar reserves. And this action is a transition from the "offensive" mode to the "defensive" mode, starting to prepare for the winter by curling up. That's what I said a few days ago, Strategy is not without ways to break through, but every method is becoming increasingly expensive. Fortunately, Strategy chose the relatively 'cheapest' method. The common stock ATM is the most flexible for Strategy, as common stocks do not have fixed dividends and there is no issue of repayment at maturity. But for ordinary shareholders of MSTR, the lower the stock price, the more shares need to be sold for the same amount of money, and the more obvious the dilution becomes. More importantly, Strategy's common stock ATM can still receive money from the market, indicating that the market believes in Strategy's ability to continue with real money. The strategic reserves of Bitcoin are still valuable, and we believe that the price of Bitcoin: native will rise! Last week, we were still calculating how long Strategy could last. Now we have $2.55 billion in cash, and based on the current annual preferred stock dividends and debt interest payments of approximately $1.76 billion, it can cover about 17.4 months. And Strategy also stated that in the future, US dollar reserves should maintain coverage for at least 12 months, and approval from the board is required for levels below this. So it was announced that a total of preferred stocks such as STRC have started to rise, with STRC rising by 10% directly. This is also what I said last week, as long as Strategy is willing to prepare for winter, STRC can be bought. In addition, Strategy has increased the annualized dividend of STRC to 12%. Although it is only an additional 50 basis points, it is too attractive for around $70 because the actual annualized return is 17.14%. Of course, Strategy also left room for further action. The announcement stated that in the future, the STRC dividend rate will be evaluated monthly, taking into account the trading price, market yield, credit spread, BTC price and volatility, US dollar reserve coverage, capital market conditions, and overall capital structure of STRC. And it is clearly stated that dividends will not continue to increase simply because STRC is below face value. This is also the same as what I said last week, the higher the dividend rate, the greater the future cash pressure. If STRC relies on continuous interest rate hikes to return to $100, it will also be a significant burden for Strategy in the long run. Next is repurchase. Strategy authorizes up to $1 billion to repurchase preferred stocks such as STRC, STRF, STRD, and STRK, with STRC being the initial priority consideration. This action is also reasonable, because if the preferred stock falls too deeply and the company buys it back at a low price, it is equivalent to using a discounted price to reduce future face value and dividend pressure. For example, if a preferred stock with a face value of $100 and a 10% dividend can be bought back for over $50, the company is equivalent to using a little over half of the money to offset the face value of $100 and future corresponding dividends. This is a very direct financial repair for the company. However, there is also a key point here that preferred stock repurchases will not use US dollar reserves. The US dollar reserve is specifically used to pay preferred stock dividends and debt interest. If Strategy really wants to repurchase preferred stocks on a large scale, it will either rely on new capital market financing or sell Bitcoin. This is the most sensitive and intense part of the discussion among my friends today. Strategy has officially authorized the Bitcoin monetization program, which allows for the sale of BTC when needed, primarily to replenish up to $1.25 billion in US dollar reserves, as well as to pay or recover preferred stock dividends and debt interest, and to repurchase preferred stock and MSTR common stock. This does not mean that Strategy is about to sell BTC, but it does mean that BTC has officially entered the capital management mode. Previously, the market understood Strategy as financing to buy BTC, but now Strategy is actually financing to replenish US dollar reserves while retaining the decision to sell BTC if necessary. Is the total amount of Bitcoin sold worth 1.25 billion US dollars?? The BTC monetization plan in the announcement has three purposes: Firstly, selling BTC generates a maximum of $1.25 billion to replenish US dollar reserves. Secondly, when management deems it more cost-effective than issuing common stock or other financing methods, BTC can be sold as an additional asset to pay preferred stock dividends and debt interest, or to replenish US dollar reserves after payment. Thirdly, additional BTC can be sold to repurchase preferred shares or MSTR common shares, including related taxes, fees, and transaction costs. So, if we only look at the item of "supplementing US dollar reserves", it is indeed at most $1.25 billion. But if combined with paying dividends and interest, replenishing reserves, repurchasing preferred shares, and repurchasing MSTR common shares, the theoretical amount of BTC realization can exceed $1.25 billion. Of course, if it exceeds these authorized purposes or exceeds the relevant authorization limit, further approval from the board of directors is required. This has a complex impact on MSTR common stocks. The advantage is that Strategy has an additional cash tool. If the cost of common stock ATM is too high, the financing cost of preferred stock is too high, and the debt market conditions are too poor, Strategy can replenish cash, pay interest, and repurchase discounted securities by selling BTC. This can reduce short-term cash flow pressure and avoid being forced to raise funds at lower prices in the worst case scenario. The downside is that the core narrative of MSTR in the past has been weakened. Previously, the confidence of market investors was the high elasticity of Strategy's continuous financing to buy BTC. Now Strategy has made it clear that the funds raised from financing can be used to replenish US dollar reserves, and if necessary, BTC can also be monetized. This will cause the market to reassess how much premium MSTR should be given appropriately. So the key to determining MSTR next is whether STRC can return to above $90 and whether US dollar reserves can be stably maintained for more than 12 months of coverage. Will common stock ATMs continue to be widely used. Will Strategy really start repurchasing discounted preferred stocks. If the common stock ATM can still be used, it means that the market continues to recognize Strategy's model, and the common stock ATM is also the financing model with the lowest pressure on Strategy. Bitget is here, VIP! Crypto、 US shares CFD， Global Advantage One Stop Layout