Analysis: Strategy liquidity issues have improved, but a systematic Bitcoin buy and sell framework still needs to be established

BlockBeats message, July 18 — CryptoQuant research director Julio Moreno said Strategy’s latest launched digital credit capital framework has basically addressed the company’s short-term liquidity issues, but a more disciplined Bitcoin buy-and-sell mechanism still needs to be established.

CryptoQuant noted that since the new framework was announced, Strategy has sold 3,588 BTC (about $216 million) to replenish its dollar reserves, and raised $466.7 million by selling MSTR stock, increasing its dollar reserves from $1.44 billion to about $3 billion. The preferred stock dividend coverage period has also been improved from about 14 months to 29 months. As of now, the company’s Bitcoin holdings remain unchanged at 843,775 BTC.

However, CryptoQuant believes Strategy still has not resolved two key issues: first, when to resume buying Bitcoin. The current framework only regulates the financing approach and has not established a valuation-based systematic accumulation model, meaning the situation of “continued buying at high levels” could still be repeated in the future. Second, how to sell part of its Bitcoin in the next bull market. The existing framework allows selling BTC to replenish reserves, pay dividends, and fund stock buybacks, but it has not yet formulated a long-term capital management strategy for trimming in stages at cycle highs or hedging risks.

CryptoQuant said that establishing buy-and-sell discipline that runs through the bull and bear cycles will be an important component of Strategy’s proactive capital management system.