Strategy cuts full-year bitcoin yield and profit outlook amid crypto pullback: CNBC Crypto World

Market Overview - Bitcoin has dropped nearly 8% to around $84,000, marking its lowest level since April, while Ether has fallen over 10% and Solana's token has decreased by 11.5% [2][3] - Bitcoin and Ether are on track for their first negative year since 2022, driven by a broader risk-off sentiment and macroeconomic concerns, including uncertainty over potential US rate cuts [3] Company Strategies - Michael Sailor's strategy has formed a nearly $1.5 billion US dollar reserve to support dividend payments on preferred stock and interest on outstanding dividends [4] - The reserve was funded through common stock sales, with plans to maintain enough for at least 12 months of dividends and to expand it to cover two years or more [5] - The company has reduced its full-year profit and Bitcoin yield targets due to significant declines in Bitcoin's price [5][6] Regulatory Environment - The regulatory landscape is becoming more favorable for crypto, with indications of a pro-crypto approach from the current administration, which may lead to increased opportunities for innovation in the sector [16][17] New Product Launches - Kelshi has launched tokenized predictions on Solana and partnered with Coinbase custody to secure USDC on its platform, aiming to tap into the liquidity of crypto holders [8][9] - The prediction market platform is positioned as a next-generation regulated exchange, integrating traditional finance with decentralized finance [15][20] Market Dynamics - The liquidity model of Kelshi allows for seamless capital access, combining on-chain and off-chain liquidity without fragmentation, which is crucial for the success of prediction markets [19][20] - The company is exploring new offerings beyond tokenized assets, leveraging the evolving regulatory environment to enhance its product suite [15][26]