Strategy: Saylor’s Secret Weapon Loses Steam – Crypto Review

Block 1: Required news

Bullish: First IPO settled on Stablecoins

The bullish crypto platform made history by becoming the first company to receive revenue from its first public offering at Stablecoins. During the US IPO, we raised $115 billion… paid in USDC, EURC, PYUSD, USDG. Mainly via the Solana blockchain. This settlement of digital assets reflects Bullish’s stated strategy to make Stablecoins the central lever of its operations, particularly for fast and inexpensive international payments. For CFO David Bonanno, the initiative demonstrates the power that combines Bullish’s infrastructure with Stablecoin’s liquidity power in the market. With its current market capitalization of $9.199 billion, it stands out in the Crypto ecosystem by combining financial innovation with the actual adoption of stubcoin.

Switzerland: SPAR accepts cryptocurrency in over 100 stores

The SPAR chain allows customers to pay for food groceries in the cryptocurrency of around 100 Swiss stores. Thanks to Binance Pay’s partnership with Fintech DFX, customers pay in Bitcoin, Stablecoins and over 100 other cryptocurrencies without transaction fees. This national initiative followed a successful trial in Zug, attracting sellers and consumers whose lightning payments reduced merchants and consumers by two-thirds. In SPAR, cryptocurrencies are quickly converted to Fiat currency, avoiding volatility. The group aims to equip Switzerland with 300 stores in the coming months. This is another indication that Switzerland has established itself as a priority for everyday cryptocurrency use.

BTCS pays unprecedented dividends… Ether (ETH)

BTCS, one of the first Ethereum treasury companies to be listed in the US, will pay ETH dividends with its shareholders, the world’s first dividend. This “Vivid”, “Blockchain” and “Dividend” contraction is $0.05 per share and is paid in ETH to the address provided in advance. But that’s not all. The royalty bonus of $0.35 per share will be awarded to shareholders who register their shares by September 26th and will hold shareholders until January 26th, 2026. The stated purpose is to reward long-term ownership and limit abusive short-term sales. The company currently owns 70,140 ETH, worth $293.5 million. This hybrid model, which combines crypto dividends with Ethereum cash management, can inspire others.

Paul Atkins wants to protect crypto from “regulatory overload”

With Paul Atkins taking the helm in the SEC, US Crypto is entering a new era. The year of Jensler and the systematic hunt for “financial securities” is gone. – The new chair wants to protect the market from regulatory abuse. At the Wyoming Blockchain Symposium, Atkins reaffirmed that most tokens are not securities. He further revealed this in X: “We need to create a clear framework that protects crypto innovation from regulatory overrestriction.” This shift is coming directly into contact with the Trump administration’s recommendations that will make the US the global capital of crypto.

We need to create a framework that will prove the crypto market against regulatory pranks to future frameworks. I look forward to working with my counterparts throughout the administration and Congress to get the job done.

– Paul Atkins (@secpaulsatkins) August 19, 2025

Block 2: Crypto Analysis of the Week

At the end of July, Saylor promised Red Line. If the Strategy (formerly MicroStrategy) stock price falls 2.5 times below the value of Bitcoin holdings, except that it pays debt or preferred dividends, no further new shares will be issued.

This means he was looking at the following ratios:

The total value of that Bitcoin (called “intrinsic value” or NAV – net asset value). Market capitalization of a strategy (what the company has value in the stock market).

If Strategy shares trade at least 2.5 times the value of their Bitcoin holdings, the company can sell new shares. If not, it usually refrains from doing so. This is a way to reassure investors who have been tired of years of continuous dilution.

example:

Investors pay $25 in shares for every $10 Bitcoin held by the company. With a $25 raise, the strategy can purchase actual BTC worth $25. This means that with each new share, you can purchase more Bitcoin than it already represents.

This is what Saylor calls his “secret weapon.” Buy Bitcoin at a discounted price using MarketPremium. This “cushion” — what Saylor calls MNAV Premium — was the group’s ultimate fundraising weapon. By selling stocks far more than Bitcoin’s value, the strategy allowed us to raise cash at a higher price and buy even more BTC at a discounted price.

(Analysis article on MNAV Premium: Bitcoin’s fatal trap)

But as soon as the rules were established it began to crack. The company now says, “We allow stocks to be sold below this threshold, even if they are deemed advantageous to the company. Translation: Flexibility takes precedence over discipline.

Bitcoin machines are slowing down

The timing is not insignificant. The strategy has built the legend with a massive BTC purchase, but the pace is slowing down. During the week of August 17th, the company purchased 430 Bitcoin ($51.4 million). Previous week: 155 BTC. This is in stark contrast to the enthusiastic purchase campaign that Saylor has made it the icon of “Bitcoin Standard.”

In total, the strategy holds around $72 billion in Bitcoin. However, while the crypto market continues to rise (23% +23% in BTC since November 20th), stocks in the strategy have declined (-20% in the same period). This decrease undermines confidence. During three months of rolling, Bitcoin will increase by 2.3% and Strategic stocks will decrease by 13%.

Bitcoin and strategy
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Investor doubt

In the face of this poor performance, skeptics are coming out of woodworking. Short-seller Jim Chanos has questioned the true demand for the prioritized share of the four series that Strategy has placed on the table. Will they be enough to fill the gap created by the (partial) halt in the issuance of common stock?

Meanwhile, Bitcoin Spot ETFs are wastewater capital Many Crypto-Treasury companies are trying to copy the formula for their strategy. The historic premium that Saylor enjoys is eroded.

Empire built on a premium

Let’s sum it up. When MicroStrategy began purchasing Bitcoin in 2020, its stocks surged, sometimes reaching a 200% premium over its reserves. This valuation bubble allowed Saylor to raise hundreds of billions of dollars in initial stock and convert a modest software company into a stock-traded Bitcoin proxy.

However, this mechanism depends on one condition. Investors continue to pay premiums. As that premium shrinks, the equation changes.

Exploring alternative funding

To limit dilution, the strategy explored other tools, such as convertible bonds and permanent preferred stocks. On paper, these avoid dilutions of existing shareholders. But in reality, they add new costs: convertible debt repayments and high dividends on preferred stock.

In short, the balance is unstable. The quest for “unlimited” Bitcoin is against the very specific constraints of traditional finances.

Saylor faces his paradox

Michael Saylor vowed to bet everything on his own model, spanning the line between financial innovation and Bitcoin’s all-in gambling. However, the course revisions reveal the truth. Even the Bitcoin empire needs cash and there is a mood in the market.

It remains to be seen whether Saylor’s aura is enough to rekindle the premium that made him so powerful. Without it, the strategy would be another company stuck between debt, its dividends, and Bitcoin’s indomitable volatility.

Cryptocurrency rankings (Click to enlarge)

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Block 3: This week’s measurements

Trump Family-backed World Liberty Financial creates a $1.5 billion Crypto Treasury Department (wired)

Crypto Crises is here (Project Syndicate)