Strategy, known for its long-term Bitcoin buying strategy, has recently been changing its fund management strategy by increasing its cash holdings while continuing to make additional purchases.
Strategy recently disclosed in a public filing that it raised funds through a common stock offering and used a portion of the proceeds to purchase Bitcoin. However, it was confirmed that the funds were not fully invested in immediate Bitcoin purchases and that the company maintains a certain level of cash reserves.
In this regard, the market interprets the strategy as a step back from its previous aggressive buying stance and a shift toward considering financial flexibility. While the company maintains Bitcoin as a core strategic asset, it is seen as moving to simultaneously manage the dilution effects of stock issuance and market volatility.
Strategy internally uses changes in Bitcoin holdings per week as a performance indicator, and the rate of improvement in this indicator has recently slowed. This is interpreted as a result of the structural characteristics of additional Bitcoin purchases being accompanied by concurrent stock issuances.
The market is also noting that a company's adjusted net asset value (mNAV) is a key variable influencing its equity issuance strategy. A decline in mNAV could negatively impact existing shareholders by purchasing Bitcoin through equity issuance. Consequently, some analysts believe the strategy is broadening its strategic options while simultaneously holding cash.
While Chairman Michael Saylor has repeatedly expressed his commitment to a long-term Bitcoin holding strategy, his recent actions are interpreted as a signal that he is prioritizing financial stability and a balanced cash management strategy over short-term buying speed.
Experts say that Strategy's latest move is not a sign of weakening confidence in Bitcoin, but rather a case of corporate risk management strategies becoming more sophisticated amidst changing market conditions.
