Strategy's Digital Credit Framework Eases Short-term Liquidity, CryptoQuant Suggests Improved Trading Discipline

CryptoQuant's research director Julio Moreno stated that Strategy's new digital credit capital framework essentially addresses short-term liquidity issues but requires a more disciplined Bitcoin trading mechanism.

After the new framework was announced, Strategy sold 3,588 BTC (approximately $216 million) and raised $466.7 million through stock financing, increasing its dollar reserves from $1.44 billion to about $3 billion. The preferred stock dividend coverage period rose from 14 months to 29 months, while Bitcoin holdings remained unchanged at 843,775 BTC.

CryptoQuant pointed out two remaining issues: when to resume buying and how to sell in batches during a bull market. The existing framework lacks a systematic valuation model and a cyclical reduction strategy.