Strategy has alternatives to selling bitcoin. A new research points to options that could raise cash without reducing its bitcoin holdings. After overhauling its capital management amid pressure on its preferred-stock structure, the key question is whether Strategy can generate liquidity without selling bitcoin.
Key Takeaways:
Strategy’s overhaul is designed to relieve near-term liquidity pressure while reducing the need for forced bitcoin sales.The plan includes a controversial BTC monetization tool that could permit limited sales if needed.New research suggests the company should focus on generating income from its bitcoin holdings rather than selling them.The market initially liked the move. MSTR rose 12.6% after the announcement, while STRC climbed 12.2%. STRC later traded near $87, still below par but well above its recent low.
Thorn called the overhaul useful but incomplete. He wrote:
“This was a smart move by Strategy, but it may not resolve structural issues forever.”
He added that “in a sense, Strategy’s move Monday simply kicks the can down the road. But Strategy kicked the can pretty far.”
What Could Strategy Do Instead of Selling BTC?He suggested using only a small portion of the company’s holdings through conservative lending or options strategies, stating:
“These could be structured trades that monetize part of the stack while limiting counterparty, custody, and duration risk,” he added.
Why Optionality Could Define Strategy’s Next MoveStrategy’s overhaul gives the company more flexibility and appears to have eased its immediate funding concerns. Still, it faces large preferred obligations and $6.7 billion in outstanding converts due in 2027 and 2028. Thorn concluded:
“All of this said, we do believe Strategy has made a wise decision to increase its optionality.”
