Thanks to the unexpected breakdown in the U.S. dollar, Bitcoin (BTC-USD) broke out. This lifted Strategy’s (MSTR) stock from a $92 - $95 trading range to a close of $122.63 on Monday.
Between July and August, Strategy faced pressure to sell some BTC to have enough funds to pay distributions for its preferred shares. The Bitcoin bounce enabled the firm to raise $2.01 billion on Monday. It is selling at-the-market common stock.
Japan’s SoftBank Group (SFTBY) planned to sell a record $6.3 billion (1T yen) in bonds. The 7-year bonds pay a yield of 4.3% to 4.9%. The firm needs more funds to provide coverage for its investment commitments to OpenAI.
The debt raise increases risks for SFTBY stock. Should OpenAI fail to complete its IPO in 2027, its mounting losses could pressure SoftBank’s investment.
Traders widely expect that Anthropic will have an IPO by this fall at a $2 trillion valuation.
In China, retail firm PDD Holdings (PDD) posted EPADS of $2.85 (non-GAAP). Revenue of $16.6 billion is up by 8% Y/Y. The firm reported cash and cash equivalents of $67.3 billion as of June 30, 2026. At a market cap of $125.8 billion, more than half the book value is cash.
PDD needs the cash to cushion against higher research costs. The cash would help offset future losses related to the weak Chinese economy.
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