Late-night explosion! $BTC's largest long position has a floating loss of 13.2 billion, Saylor urgently reveals 5 trump cards, how long can retail investors hold on?

Let's talk about something big today.

Strategy, that bold company that treats its corporate treasury as a $BTC reserve, is now sitting on an unrealized loss of $13.2 billion and has announced five strategies to save itself. Let's see what's really going on.

First, let's talk about holdings. As of June 28, Strategy held a total of 847,363 $BTC, with a total cost of approximately $64.1 billion and an average price of $75,651. Now $BTC is hovering around $60k, resulting in an unrealized loss of $60k. The company previously borrowed money to buy coins through convertible bonds, ATM equity offerings, and preferred shares (especially STRC), forming a leveraged accumulation. The total notional amount of preferred shares exceeds $10 billion, with annual dividend and interest expenses of approximately $1.76 billion. STRC, as the core product, recently traded as low as around $74 (face value $100), causing the effective yield to spike and market concerns about sustainability.

The stock price has also come under pressure recently. MSTR (Strategy's common stock) dropped over 40% in a single month, with the mNAV indicator falling below 1x; the discount on preferred shares made new issuances less attractive. To cover dividends, the company even suspended certain STRC issuances and sold some $BTC. Market observers point out that the model of simply leveraging financing to buy coins lacks resilience when $BTC volatility intensifies or the financing window narrows.

Therefore, on June 29, Strategy launched the 'Digital Credit Capital Framework,' with five strategies as follows:

First, strengthen U.S. dollar reserves. As of June 28, the company's U.S. dollar reserves had increased to approximately $2.55 billion (including unsettled ATM issuance proceeds). This money can only be used to pay preferred stock dividends and debt interest; other uses require board approval. The policy requires maintaining at least 12 months of minimum reserves, and the current $2.55 billion equates to 17.4 months of coverage.

Second, raise the STRC dividend rate. The annual dividend rate is increased by 50 basis points to 12.00%, with the goal of having STRC trade in the $99-$100 range (close to par) over the long term. Going forward, the rate will be evaluated and adjusted monthly based on factors such as trading levels, market yields, credit spreads, and $BTC price volatility. Note that dividends still need to be declared by the board and are not guaranteed.

Third, dual repurchase authorization. A digital credit securities repurchase program of up to $1 billion (prioritizing series like STRC) and a common stock repurchase program for MSTR of up to $1 billion are established. Repurchases can be conducted through various methods including open market and block trades, with no fixed expiration date. Repurchase funds do not come from the U.S. dollar reserve; if funded by selling $BTC, they will be included in the BTC monetization plan.

Fourth, formalize the $BTC monetization plan. The board authorizes the sale of $BTC for three purposes: to generate up to $1.25 billion to fund the U.S. dollar reserve; to fund maturing preferred stock dividends and interest (or supplement reserves); and to fund securities repurchases under the repurchase program (including taxes and fees). Uses beyond this scope require additional approval. There is no fixed expiration date.

Fifth, overall liquidity coverage enhancement. Combining the $2.55 billion reserve with the $1.25 billion BTC monetization capacity, the total dividend coverage capacity is approximately $3.8 billion, equivalent to about 25.9 months (excluding factors such as repurchases and interest rate changes). The company commits to maintaining issuance discipline when MSTR trades near 1x mNAV.

What is the essence of this strategy? My view: Saylor (Strategy's leader) is turning the potential 'passive selling of coins' into a controlled tool for specific liquidity needs rather than arbitrary monetization. This both responds to market doubts about dividend payment capacity and creates conditions for accretive repurchases when securities are at a discount — repurchasing preferred shares directly reduces future dividend expenses, and repurchasing common shares may increase the $BTC value per share.

In the short term, the 25.9-month coverage buffer can alleviate liquidity concerns and enhance balance sheet resilience. In the medium to long term, it may optimize the capital structure through repurchases, reduce effective financing costs, and provide a more sustainable path for $BTC accumulation. For MSTR holders, they may benefit from accretive repurchases, but attention should be paid to the dilutive effect of $BTC monetization on the 'pure $BTC leverage' narrative. Preferred shareholders (especially STRC) see the company clearly supporting price stability, and the dividend increase along with repurchase tools help balance yield and principal.

Risks also exist: if the market interprets this as a 'financial stress signal,' the stock or preferred shares may come under pressure in the short term; $BTC sales, regardless of size, may spark community controversy; the macro environment (interest rates, regulation) will still affect execution effectiveness.

One final note: The corporate $BTC treasury strategy is moving from 'proof of concept' to 'scaling and institutionalization,' which inevitably involves the pains of capital structure optimization. Saylor's move provides a template for other potential adopters (such as Metaplanet, etc.). But whether the template works well depends on market conditions. Weigh your own chips carefully.

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