Which one of Strategy and Bitmine is more dangerous

@OdailyChina

Author: Wenser (@wenser  2010 )

As the market continues to fall, both Strategy and Bitmine, the "DAT Treasury" double-deficit, have suffered huge losses。

THIS MORNING, BTCAt one time it fell $62,000, CURRENTLY PROVISIONALLY REPORTED APPROXIMATELY $63,800; ETHIt's falling. $1800I'll give you approximately $1780. At current prices, the size of Strategy's loss has reached a staggering $10 billion; the size of Bitmine's loss has also reached about $9 billion. At one point, Michael Saylor and Tom Lee were “same losers” and Strategy and Bitmine became “DAT’s top companies”。

But Bitmine has less financial pressure than Strategy, which has to pay the dividends on a continuous basis, and retains flexibility to raise funds like STRC. According to the information received, BitmineTo raise $300 million, annualized dividends 9.5 per cent through the issue of a sustainable priority unitI don't know. In this way, Bitmine's increased ETH is continuing; while the sword of Damocles hanging over Strategy becomes -- where does the funds for the subsequent payment of STRC dividends come from? Between the two, who is under greater financial pressure? The Daily Odaily Planet will be the reader。

Bitmine VS Strategy: Distinguished DAT held currency

With the BTC crash today, members of the community used AI to screw up a Saylor "cargo" BTC:“SIXTEEN OLD MAN HIMSELF, ANCESTRAL BTC PRICE IS AS LOW AS $62,000.”

Turning back to Bitmine and Strategy, the financial structure of Bitmine is now more secure; and Strategy has greater leverage pressure。

Bitmine equity distribution game: no debt financing DAT game

Bitmine held as at 1 June5,416,901 ETH; approximately 4.49 per cent of the supply of ETH, close to the “5 per cent cap” previously emphasized by Chairman Tom Lee of Bitmine. Yesterday, BitmineMaintain 25,000 ETHs again through BitGoIT IS WORTH $48 MILLION, AND NOW ITS HOLD COMES TO 5441901 ETH。

There are many reasons why Bitmine is still growing when the market falls. The main reason is that Bitmine is financed by equity:

• When the ETH Treasury was launched last June, Bitmine obtained initial start-up funding — $250 million — and small PIPE financing。
• After July last year, Bitmine relied heavily on ATM and gradually increased the figure from $2 billion to $24.5 billion。

There's enough money for Tom Lee, and Bitmine's book money supports further increase - Bitmine on June 1stIt's in the public announcement:The company has an equity value of $180 million in Best Industries and $93 million in Eightco Holdings. The total cash of the company was $446 million。

Besides that, Tom LeeIt's also high-profileBitmine has a daily pledge of $1 million from the Etherak Treasury. In part, Bitmine pledged approximately 87 per cent (approximately 4.71 million ETH) of its ETH hold through its MAVAN network, with an estimated 2.73 per cent-3 per cent (approximately US$ 250-300 million) of the annualized revenue expected to provide a more stable cash flow。

In summary, Bitmine is in good financial condition; and is up to dateAnnualized dividends of 9.5 per cent of priority equity financingIt is expected that $300 million will be secured and that the financial pressure will be further mitigated。For the company, the greatest risk is the further decline in equity prices due to the dilution of shares (new equity issuances) and book losses, which may trigger stock sales if mNVA continues at <1。

Strategy Debt Leverage Game: Convertible and Priority Equity Pressure

The financial pressure for Strategy to buy BTC is greater than for Bitmine's “buying ETH with investors' money” because it is mainly “loaning up BTC”。

According to Strategy official network, currently StrategyApproximately $6.7 billion in debt-transferable debt heldADD APPROXIMATELY $9.9 BILLION IN STRC PRIORITY SHARES AND INTEREST RATES RANGING FROM STRD, STRK, STRF, TO LARGE DIVIDENDS AND INTEREST EACH YEAR. AT THE END OF MAY, AFTER REPURCHASE OF $1.5 BILLION IN CONVERTIBLE DEBTStrategy, cash reserve down to about $871 millionOnly its projected annual priority dividends obligation of $1.7 billion could be covered for about six months。

Not only that, but Strategy started it before"PROPOSAL OF AN INCREASE IN STRC DIVIDEND PAYMENTS FROM 1 TO 2 PER MONTH"I don't knowThe vote began on 28 April and will end on 8 June. If the proposal is approved, the first equity registration date under the new rhythm is 30 June and the first interest date is 15 July。ELIGIBLE SHAREHOLDERS (BOTH MSTR AND STRC SHAREHOLDERS) MUST HOLD SHARES BEFORE 17 APRIL。

IN ADDITION, IT IS WORTH MENTIONING THAT THE AUTHORIZED MAXIMUM ISSUED BY STRC IS APPROXIMATELY $28.3 BILLION. OR AFFECTED BY BTC'S CONTINUING DECLINE AND MARKET CONFIDENCEBroken $95For the time being, $94.65 is provisional, which is more than 5 per cent above the target price of $100 for “de- anchoring”。

Compared to Bitmine, Strategy is currently facing a huge gap between the continued decline of the BTC, the excessive amount of priority equity financing and the payment of dividends, and, unlike ETH, which has pledge proceeds, the BTC does not have an alternative pledge ecology to gain more liquidity。

Thus, following the sale of 32 BTCs by Strategy last month, the market began to cast doubt on the identity of “Stratiegy, who buys only unsold diamonds”. YesAs the BTC continues to fall, Strategy may face a series of liquidity crises that prevent it from paying its debts, dividends and sell BTC again. In essence, Strategy plays the "high leverage bet BTC price will not fall to a certain price" debt leverage game。

As a result, the market is still highly doubtful about the subsequent performance of its share price, combined with Strategy ' s current MNAV value of 0.83. YesterdayIts market value has fallen before the market value of American companiesI don't know. This post is part of our special coverage Syria Protests 2011Strategy (MSTR)The provisional share price was $126, a 24-hour drop of 7 per cent; the market value of $44.6 billion。

And of course, as director of DAT Treasury, director of Bitmine, Tom Lee, still pretty good with StrategyPrevious indications"Strategy sells bitcoin and ETF outflows are typical bottom-building, non-risk signals." At the recent “Proof of Talk 2026” conference at the Louvre of Paris, Tom Lee put out a great deal of rhetoric: “With artificial intelligence and monetization driving major changes in the financial infrastructure, ETH may eventually reach $250,000.” However, the reference to “bitimine ETH conduct after having reached 5 per cent of the total” also expresses caution with regard to increasing ETH. (Detailed)"Tom Lee Full Faith: Encryption Spring is here and ETH will rise to $250,000."I'm not sure

At present, Bitmine is highly similar to Strategy’s market position, but in a slightly better financial position; Strategy is faced with a choice between “selling more BTC for cash-flow dividends” and “sitting BTC’s continued debt increase or inaction.”。