Strategy, a business intelligence company, has improved its finances after facing some cash flow issues earlier in the year. CryptoQuant, a data analytics firm specializing in cryptocurrency, reported on July 14th that Strategy’s new financial plan has relieved immediate pressure. However, CryptoQuant still has questions about Strategy’s plans for Bitcoin in the future.
This update comes after a CryptoQuant report on June 23rd raised concerns that Strategy Partners was spending its cash quickly despite still buying Bitcoin. Analysts then estimated the company only had enough money to pay dividends for roughly fourteen more months unless it received extra funding.
Strategy Rolls Out New Capital Framework
To ease worries about finances, Strategy launched a new Digital Credit Capital Framework on June 29th. This plan included a formal policy, approved by the board, to set aside U.S. dollars – starting with a goal of $2.55 billion and later increasing to around $3 billion.
The company increased its STRC dividend rate to 12% and authorized up to $1 billion for both issuing preferred stock and buying back its own shares (MSTR). Additionally, it launched a program that lets it sell up to $1.25 billion in Bitcoin to help maintain reserves and cover expenses.
According to the company that analyzes blockchain data, these recent actions follow advice from a previous report they published. As part of this strategy, they temporarily stopped buying more Bitcoin and instead sold $216 million worth (3,588 BTC) between June 29th and July 5th. They also raised an additional $466.7 million by selling shares of their stock.
Because of these changes, the company’s cash reserves increased from about $1.44 billion to around $3 billion, enough to cover dividends for approximately 29 months. At the same time, Strategy kept its Bitcoin holdings steady at around 843,775 BTC by pausing any additional purchases.
Questions Over Future Bitcoin Management Remain
CryptoQuant reports the market reacted well to improved liquidity, despite some lingering concerns. STRC’s price has risen from a low of around $75 in June to about $88, but it’s still trading below its $100 target price.
Despite this, experts point out that the plan doesn’t say when Bitcoin buying might start again after the recent halt. They also note that the program focuses on paying dividends, building up reserves, and buying back shares, but it lacks a specific plan for trading Bitcoin.
2026-07-20 00:53