Grayscale analysts believe Strategy’s updated financial policy has eased investor concerns about the company’s long-term stability and could strengthen market confidence in Bitcoin. According to them, the company has made its funding model more predictable by acknowledging that it could sell part of its BTC holdings to replenish its U.S. dollar reserves.
Strategy introduced its new liquidity management policy at the end of June. The company said it will maintain enough cash reserves to meet its preferred stock obligations through a combination of new securities issuance and the sale of a portion of its Bitcoin holdings.
According to Grayscale, before the policy update, investors lacked clarity on how Strategy would meet its obligations if its cash reserves continued to shrink. By the end of May, those reserves had fallen to about $870 M, enough to cover roughly six months of preferred dividend payments, which increased uncertainty about the company’s next steps.
On July 6, Strategy reported that it had sold approximately $216 M worth of Bitcoin over the previous week. After the sale, its cash reserves increased to $2.55 B, which the company estimates is enough to cover approximately 17 months of preferred dividend payments.
