Strategy disclosed that a new “digital credit capital framework” had been introduced and that it could sell a portion of Bitcoin in the future under specific circumstances to cover priority dividends, interest expenditures, replenishment of cash reserves and repurchase of shares. This means that Michael Seller's long-held “never sells bitcoin” position is clearly relaxed.

After the news came out, MSTR's market reaction was divided. The Unit experienced a significant increase of more than 12 per cent per day in its previous transactions, indicating that part of the funds initially saw this arrangement as a more flexible capital management tool. However, in pre-discretion transactions, MSTR fell again by more than 5 per cent, reflecting that investors are still re-assessing the impact of this adjustment on the long-term valuation of the company.

Can sell bitcoin for multiple expenses

Corporate disclosures indicate that the new framework gives management greater operational space. In addition to preferential dividends and interest expenditures, the proceeds from the sale of bitcoin can be used to maintain cash reserves and to execute stock buy-backs.

This is not the case with Strategy, which has been growing over the years and is trying not to use bitcoin reserves. Market concerns have also shifted from “continue buying” to “when will part of the realization start”.

  • Payable for priority dividends
  • Available to cover interest and cash reserves
  • Available for stock buy-back arrangements

Nearly 850,000 BTCs hold hold.

To date, Strategy has nearly 850,000 BTCs. Over the past few years, the company has become one of the largest-vulnerable companies in the United States stock market, by raising funds for the purchase of bitcoin, mainly through debt swaps, preferential shares and increased equity.

However, after a long period of bitcoin hovering around $60,000, the company's bookkeeping pressure also rose. The report mentions that, over the past two quarters, Strategy ' s combined unrealized losses have exceeded $32 billion, and for the first time its business value is lower than the value of its Bitcoin assets.

This set of data suggests that the market no longer looks at the size of the warehouse, but also begins to place greater emphasis on financing costs, dividends pressures and balance sheet affordability.

Market re-evaluation of the treasury strategy

Bitcoin over the past 24 hours has had little overall volatility and is still in the vicinity of $60,000, significantly below last year's high. For listed companies with large amounts of bitcoin, this price environment has a direct impact on valuation elasticity.

The previous increase in MSTR reflects the approval by some investors of the company's approach to increasing its financial flexibility; however, the upturn also shows that the market's acceptance of “sale of bitcoin for cash flow” is inconsistent. For Strategy, the new framework, while expanding the room for manoeuvre, also brought its Bitcoin Treasury strategy into a new phase with a greater emphasis on liquidity management.