US business intelligence firm Strategy has strengthened its financial position by addressing liquidity concerns raised earlier this year. In a follow-up on July 14, on-chain analytics firm CryptoQuant said the company’s new capital framework had eased short-term financial pressure. However, the company noted that questions remain about Strategy’s long-term Bitcoin strategy.
the to update This follows a CryptoQuant assessment on June 23, which warned that the strategy’s cash reserves are shrinking even as Bitcoin buying continues. At the time, analysts estimated that the company had enough liquidity to cover its preferred dividend obligations for only 14 months without additional financing.
The strategy introduces a new capital framework
To address these concerns, a strategy foot Its digital credit capital framework was announced on June 29 to enhance its financial flexibility. The plan established a board-approved US dollar reserve policy that initially targeted approximately $2.55 billion before later raising the target to approximately $3 billion.
The framework also raised the STRC dividend rate to 12% and approved up to $1 billion for the issuance of preferred securities and the repurchase of MSTR shares. It also introduced a Bitcoin monetization program, allowing the company to sell up to $1.25 billion worth of Bitcoin to support reserves and funding needs.
The on-chain analytics company said the measures are closely aligned with recommendations made in its previous report. The strategy also temporarily halted additional Bitcoin purchases and sold 3,588 Bitcoin worth approximately $216 million between June 29 and July 5. He grew up $466.7 million by offering MSTR shares on the market.
As a result, cash reserves increased from approximately $1.44 billion to approximately $3 billion, extending estimated earnings coverage to approximately 29 months. During the same period, Strategy maintained its Bitcoin holdings at around 843,775 BTC comment More accumulation.
There are still questions about Bitcoin’s future governance
According to CryptoQuant, the market has responded positively to the stronger liquidity position, although some uncertainty remains. STRC has recovered from its June low near $75 to around $88, but continues to trade below its reported value of $100.
However, analysts said the framework does not clarify when Bitcoin purchases could resume after the recent pause. They also said that the Bitcoin monetization program prioritizes dividends, reserves and share buybacks without defining a clear Bitcoin trading strategy.
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