Galaxy CEO: Strategy Has Become a Market-wide Signal of Confidence, Focus on Its Balance Sheet and STRC Performance

BlockBeats News, June 28th - Galaxy Digital CEO Mike Novogratz stated that the recent drop in Bitcoin's price is primarily due to a "Confidence Collapse driven by Strategy." The issue lies not only in Bitcoin's price itself, but more so in the market's concerns regarding the Strategy financing model. As the world's largest publicly traded corporate Bitcoin holder, Strategy's stock and preferred securities have become a key indicator for traders to assess Bitcoin market risk. Previously, the company's Bitcoin flywheel effect was under pressure, with the stock trading price falling below its Bitcoin holdings value, indicating that its long-relied-upon "premium share issuance for coin repurchase" model is being challenged. Novogratz bluntly stated that STRC trading is weak, and it should ideally be maintained around $100. Currently, Strategy's annual dividend obligation has risen to approximately $1.2 billion, and the decline in cash reserves has shortened the dividend coverage period to only about 14 months.

Bitcoin is also facing pressure at a macro level. Novogratz summarized the current market logic as "A strong dollar is a weak Bitcoin," with hawkish central bank signals and a strong dollar suppressing demand for risk assets. From a technical perspective, the $59,000 to $60,000 range has become a key defense line for Bitcoin, and if breached, downside potential may open up to $45,000.

Novogratz also admitted that the current situation is complex, with the probability of a rebound versus a deep retracement being fifty-fifty. Outflows from ETF funds, weak liquidity, and the cautious positioning in the options market further confirm the market's fragile sentiment. Today, the health of Strategy's balance sheet, STRC price performance, and cash position are no longer just issues at the company level but have evolved into a confidence signal for the overall Bitcoin market.