According to Chase Morgan, the new capital arrangement for Strategy has created new uncertainty in the Bitcoin market. The reason for this is that the listed company, which has long been regarded as a continuous purchase of bitcoin, may now also be a seller under certain conditions.
Strategy currently holds 847,363 BTCs, about 4 per cent of the total supply of bitcoin. Owing to the size of the warehouse, any sales and sales operations of the company are easily interpreted by the market and affect liquidity expectations.
Small-scale sales at the end of May
According to Morgan Chase analysts, the regulatory documents submitted by Strategy on 1 June indicated that the company had sold 32 BTCs between 26 May and 31 May to pay dividends. This move, although modest in scope, has raised the market ' s concern about its future possibilities for selling currency.
According to the Bank, the new Strategy policy introduces “two-way risk”. In other words, the company is no longer a large buyer of bitcoin, but may also have part of the sale held under financing, dividends or repurchase arrangements.
The $1.25 billion plan covers multiple uses
Under the new framework, Strategy could sell bitcoin in a total amount not exceeding $1.25 billion to replenish cash reserves, pay priority dividends, interest expenditure and repurchase arrangements. The company has not indicated that it will be able to fully use this amount, but the market concern is that the marketing routes have been formally incorporated into the capital toolbox.
In addition to the Bitcoin Disbursement Plan, the new capital framework for Strategy includes priority stock buy-backs, common stock buy-backs and formal minimum cash reserve targets. Michael Saylor also stated on X that the company ' s objective was to keep the SRC ' s long-term transactions between $99 and $100.
Morgan Chase says cash reserves are still low.
The minimum cash reserve target set by Strategy is equivalent to 12 months of priority dividends and interest expenditure. Based on the company ' s current cash reserves of approximately $25.5 billion, the related obligations for 17 months could be roughly covered.
According to Chase Morgan, this level may still be insufficient to stabilize investor expectations. The bank stated that to reduce market concerns about the re-sale of bitcoin, Strategy might need to increase the cash cover period to between 24 and 36 months.
The analyst also indicated that companies could consider replenishing cash reserves by issuing general shares, even if this could result in a discount on the value of the general share relative net assets. According to Chase Morgan, such an approach would help to reduce the likelihood of future sales of bitcoin and reduce market volatility.
At the same time, it was mentioned that the movement of Bitcoin in the second half of the year, in addition to being influenced by Strategy ' s financial arrangements, was also related to the advancement of encryption market structure legislation in the United States, including the progress of Clarity Act.