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PANews, January 22 – According to an exchange report, the credit risk of bitcoin treasury company Strategy has eased, as the notional value of its perpetual preferred shares has reached $8.36 billion, exceeding its $8.2 billion in convertible debt. This shift in capital structure towards permanent capital reduces refinancing risk and balance sheet volatility. Convertible bonds introduce refinancing risk at maturity and volatility linked to the share price, whereas perpetual preferred shares do not require principal repayment and pay a fixed dividend, ranking between common equity and debt in priority. The company's preferred share portfolio consists of four instruments, with a total annual dividend of approximately $876 million. In addition, Strategy holds $2.25 billion in reserves to improve dividend coverage and reduce short-term financing risk. The number of outstanding common shares has increased from 76 million in 2020 to over 310 million, which may alleviate future dilution pressure from bond conversions.

According to ChainCatcher, market sources indicate that bitcoin has fallen below the 0.75 supply cost-basis quantile and has failed to reclaim this level. The current spot price is now below the cost basis for 75% of the supply, suggesting that selling pressure is increasing. Risk has risen significantly, and unless the price recovers above this level, the downward trend will remain dominant.

Bitcoin has failed to reclaim the 0.75 supply cost basis. Currently, the spot price is below the cost basis for 75% of the supply, indicating increased distribution pressure. Risk levels have risen, and the downward trend is dominant unless this level is reclaimed. (glassnode)