Analysis: "Strategy's BTC Financial Strategy Model Will Be Tested Next Year"

Strategy, the largest single-company Bitcoin holder, is expected to face a test of its BTC financial strategy model next year, according to an analysis. According to Cointelegraph, experts noted that "Strategy could leverage the BTC net asset value (NAV) premium in a bull market to expand equity issuance and leverage. However, the model's sustainability could drastically weaken in sideways and bear markets." The outlet explained, "Strategy is no longer viewed as a traditional operating company. It has transformed into a leveraged Bitcoin investment vehicle. This structure can generate significant returns in bull markets, but can also underperform sharply depending on market conditions. Investors should closely monitor BTC holdings, average purchase price, leverage ratio, preferred stock and bond issuance, and cryptocurrency market performance."