Marex: Strategy’s capital trap tightens as stakeholders fight over the capital waterfall

Bitcoin holder Strategy (MSTR) faces a tightening “capital trap” as different stakeholders compete for capital in a crisis-driven hierarchy, Marex Solutions strategist Ilan Solot said. According to CoinDesk, Solot warned that selling bitcoin would hurt Strategy’s core narrative and common shareholders, issuing more stock would dilute equity holders, skipping preferred dividends would hit preferred investors, and issuing more debt would push others further down the capital waterfall. Strategy recently bought 1,550 bitcoin for $101 million, lifting its holdings to 845,256 BTC, and raised its USD reserve by $100 million to $1 billion in a Monday filing.