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 eased short-term financial pressures. However, the company noted that questions remain about Strategy’s long-term Bitcoin strategy.
This update follows a June 23 review from CryptoQuant, which warned that Strategy’s cash reserves were dwindling even as Bitcoin purchases continued. At the time, analysts estimated that the company had enough liquidity to cover its preferred dividend obligations for just about 14 months without additional funding.
Strategy deploys new capital framework
To address these concerns, Strategy introduced the Digital Credit Capital Framework on June 29 to enhance financial flexibility. The plan established a Board-approved U.S. dollar reserve policy with an initial target of approximately $2.55 billion, with the goal subsequently increased to approximately $3 billion.
The framework also increased STRC’s dividend rate to 12% and authorized up to $1 billion each for the issuance of preferred securities and the repurchase of MSTR shares. It also introduced a Bitcoin monetization program, allowing it to sell up to $1.25 billion in Bitcoin to support its reserves and funding needs.
The on-chain analytics firm said the measures closely align with recommendations made in previous reports. The strategy also paused additional Bitcoin purchases and sold 3,588 Bitcoins. $BTC From June 29th to July 5th, the company raised approximately $216 million worth of funding. In addition, the company raised $466.7 million through MSTR’s over-the-counter stock offering.
As a result, our cash reserves increased from approximately $1.44 billion to approximately $3 billion, and our estimated dividend period extended to approximately 29 months. During the same period, Strategy maintained its Bitcoin holdings at approximately 843,775. $BTC By stopping further accumulation.
Questions remain regarding future Bitcoin management
According to CryptoQuant, although the market has responded positively to strengthening liquidity positions, uncertainty remains. STRC recovered from its June low of around $75 to around $88, but continued to trade below the specified price of $100.
Still, analysts said the framework does not explain when Bitcoin purchases will resume after the recent pause. He also said that the Bitcoin monetization program prioritizes dividends, reserves, and share buybacks without defining a clear Bitcoin trading strategy.
