Analysis: Strategy's liquidity issues have improved, but a systematic bitcoin trading framework still needs to be established

BlockBeats reports that on July 18, CryptoQuant’s Head of Research Julio Moreno stated that Strategy’s newly launched digital credit capital framework has largely resolved the company’s short-term liquidity issues, but a more disciplined mechanism for buying and selling Bitcoin still needs to be established.

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

However, CryptoQuant believes that Strategy has not solved two key issues: First, when to resume buying Bitcoin—currently, the framework only regulates financing methods and has not established a systematic entry model based on valuation, so repeated “continual high-priced buying” may happen again in the future; Second, how to sell some Bitcoin in the next bull run—the current framework allows selling BTC to supplement reserves, pay dividends, and repurchase shares, but has yet to create a long-term capital management strategy such as phased reduction at cycle peaks or risk hedging.

CryptoQuant stated that establishing buying and selling discipline throughout bull and bear cycles will be an important part of Strategy’s active capital management system.