Analysts of the CryptoQuant platform have evaluated Strategy's new capital management program. Experts called this step an important step towards reducing liquidity risks. However, experts still lack clear rules for buying and selling the first cryptocurrency. Julio Moreno, head of research, noted that the company has made a real course correction. Strategy suspended the purchase of bitcoin and restored the dollar reserve. Stocks rose from $1.44 billion to $3 billion. The company also sold about 3,588 bitcoins worth $216 million. Additionally, funds were raised through the sale of MSTR shares. The dividend coverage has successfully doubled from 14 months to 29 months.

At the end of June, the firm presented a comprehensive plan consisting of five key parts. The first point concerns the creation of a dollar reserve only for dividends and interest on debt. The minimum coverage must be at least twelve months of payments. The second point provides for an increase in the dividend on STRC preferred securities to 12% per annum. The third and fourth clauses allow for the repurchase of shares in the amount of up to $ 1 billion. Priority is given to STRC preferred shares, but it is also possible to buy back MSTR ordinary shares. The fifth paragraph describes the bitcoin monetization program. The company can sell coins worth up to $1.25 billion. These funds will be used to replenish the reserve or finance buybacks.

Despite the fulfilled commitments, two important questions remain unanswered. The first concerns the moment when bitcoin purchases resume. The current share issue rule regulates capital raising, not its deployment. Without a valuation accounting model, the company risks buying assets at local peaks again. The second issue concerns the sale of cryptocurrencies in the next bull cycle. The current monetization program is purely defensive in nature. It does not provide for partial realization or hedging at the peaks of the cycle. This end-to-end sales discipline is the second half of active money management. Earlier, JPMorgan bank analysts also criticized the decision to sell bitcoin. They announced the creation of a two-way risk for the market.

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The material has been prepared solely for informational purposes and does not constitute financial advice or recommendation.