Strategy “death spiral” fears denied: cash buffer and STRC structure seen as key defenses.

According to ME News, on June 16th (UTC+8), concerns about Strategy (MSTR) potentially falling into a "death spiral" of selling pressure have been escalating in the market, against the backdrop of Bitcoin's price briefly falling to around $60,000, sparking discussions about the stability of its leveraged treasury model. However, Wall Street institutions such as Benchmark and TD Cowen released reports explicitly refuting this pessimistic narrative and maintaining their "buy" rating on Strategy. Benchmark analyst Mark Palmer stated that the "death spiral" assumption ignores multiple buffers: before any large-scale Bitcoin sale, the company needs to burn approximately $1 billion in cash reserves for dividend payments, and its current Bitcoin reserves of approximately $55 billion provide a strong buffer. STRC is a type of perpetual preferred stock designed to maintain a price of around $100 and provide a floating annualized yield of approximately 11.5%. Analysts believe that this mechanism, through a cycle of "yield demand → financing → BTC accumulation," is considered the core funding engine of its long-term treasury model. TD Cowen points out that even during periods of significant Bitcoin correction, the STRC structure exhibits lower volatility, contributing to capital stability and positioning it as a "yield and capital protection tool" rather than a purely high-risk speculative instrument. However, criticisms exist that the structure could create a "negative feedback loop," triggering asset sell-off pressures in extreme circumstances. (Source: ME)