Analysis: The Strategy liquidity issue has improved, but a systematic Bitcoin trading framework still needs to be established

BlockBeats News, July 18th, CryptoQuant's Head of Research Julio Moreno stated that Strategy's latest Digital Asset Capital Framework has effectively addressed the company's short-term liquidity issues, but still needs to establish a more disciplined Bitcoin buying and selling mechanism.

CryptoQuant pointed out that since the new framework was announced, Strategy has sold 3,588 BTC (approximately $216 million) to supplement its US dollar reserves. Through the sale of MSTR shares, Strategy has raised $4.667 billion, increasing its US dollar reserves from $1.4 billion to about $3 billion. The preferred stock dividend coverage period has also increased from around 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 yet to address two key issues: first, when to resume Bitcoin purchases. The current framework only standardizes the financing method and has not established a valuation-based systematic accumulation model, which may lead to a repeat of the situation of "continuous buying at high prices" in the future. Second, how to sell part of the Bitcoin in the next bull market. The existing framework allows for the sale of BTC to supplement reserves, pay dividends, and buy back shares, but a long-term capital management strategy for selling in batches at cycle highs or hedging risks has not yet been formulated.

CryptoQuant stated that establishing buying and selling discipline throughout the bull and bear cycles will be a crucial part of Strategy's active capital management system.