Bitcoin Rebounds 5% to $64,200 as Strategy’s $12 Billion Paper Loss Spurs Short Covering
Updated
Updated · CoinDesk · Jun 4
Bitcoin Rebounds 5% to $64,200 as Strategy’s $12 Billion Paper Loss Spurs Short Covering
1 articles · Updated · CoinDesk · Jun 4
Summary
$64,200 marked bitcoin’s mid-morning U.S. rebound, up about $3,000 from overnight lows as the selloff paused and traders covered bearish positions.
A key pressure point was Strategy’s roughly $12 billion loss on its bitcoin holdings, alongside data showing about 50% of circulating bitcoin was being held at a loss.
Strategy’s financing strain stayed in focus: its STRC preferred, with more than $15 billion issued, implies nearly $1.8 billion in annual dividends at the current 11.5% rate.
That dividend burden helps explain why Michael Saylor’s company sold 32 bitcoin last week, and why markets now fear it may need to unload thousands more over time.
Risk sentiment improved modestly with STRC rising 1.6% to $96.15 and MSTR common stock gaining 3.4%, even as investors weigh whether the bounce signals a bear-market floor.