Svmuu News: Last week, Strategy sold nearly $467 million worth of MSTR common stock but did not increase its holdings of Bitcoin. Analysts believe this indicates the company is implementing its recently proposed Digital Credit Capital Framework and has begun prioritizing the strengthening of its balance sheet rather than simply pursuing short-term increases in BTC holdings.
According to the latest filings, Strategy has increased its U.S. dollar cash reserves to $3 billion, while its Bitcoin holdings remain unchanged at 843,775 BTC. Both Benchmark and TD Cowen believe this move strengthens the company’s balance sheet and helps boost market confidence in its preferred stock financing model.
TD Cowen reaffirmed its “Buy” rating and $260 price target for Strategy’s stock, stating that this move is an early indication of management’s implementation of a new capital allocation framework.The firm noted that Strategy’s decision to expand its U.S. dollar reserves and suspend purchases of “Bitcoin” reflects a greater emphasis on balance sheet discipline rather than maximizing short-term BTC accumulation.
Benchmark also maintained its “Buy” rating with a price target of $570.On Monday, Strategy’s stock price stood at approximately $91.50, near its long-term low. Overall, analysts believe that, against the backdrop of pressure on preferred stock financing instruments such as STRC and market focus on dividend coverage, Strategy’s increase in cash reserves may help alleviate investor concerns about forced BTC sales.