CryptoQuant: Strategy has eased liquidity pressure, but a systematic mechanism for Bitcoin buying and selling is still needed.

robot
Abstract generation in progress
CryptoQuant research head Julio Moreno said that Strategy’s newly launched digital credit capital framework raises its USD reserves from $1.44 billion to $3 billion by pausing Bitcoin purchases, selling a portion of BTC, and issuing additional MSTR shares, extending the dividend coverage period from around 14 months to 29 months and easing near-term liquidity pressure. However, he believes Strategy still lacks two clear mechanisms: first, determining when to resume buying Bitcoin based on valuations and market conditions; second, during the next bull cycle, selling or hedging part of its holdings in stages to reduce leverage, lock in profits, and preserve capital for lower-price buybacks. Strategy currently holds 843,775 BTC and has not executed any preferred stock or common stock buybacks. (The Block)
BTC0.05%
MSTR0.86%
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • 5
  • 1
  • Share
Comment
Add a comment
Add a comment
StarknetStar
· 2h ago
In the end, it still comes down to the BTC price trend—if the bull market doesn’t arrive, these numbers games are all for nothing.
View OriginalReply0
Don'tMessWithSlippage.
· 2h ago
843,775 BTC, wow—if this gets dumped, the market will have to shake three times, but they don’t buy it back; maybe they think it hasn’t hit the bottom yet?
View OriginalReply0
FloatingTeacupClub
· 2h ago
The dividend coverage period has been extended again, but issuing additional MSTR shares essentially dilutes equity to raise cash, and in the long run it may not be worthwhile.
View OriginalReply0
GasGhost
· 2h ago
The two missing points pointed out by Moreno are crucial—if the buy signal isn’t restored, how would the bull market de-leverage?
View OriginalReply0
  • Pinned