Strategy (MSTR) has strengthened its balance sheet by increasing its U.S. dollar reserve to $2.19 billion, after raising $748 million through common share sales. According to analysts at TD Cowen (TD Securities), this cash buffer is sufficient to cover Strategy’s interest and dividend obligations for roughly 32 months, significantly reducing concerns about its resilience during a prolonged crypto downturn.
TD Securities described the move as prudent balance-sheet management, emphasizing that improved liquidity enhances Strategy’s long-term viability even in a potential “crypto winter.” The firm reiterated its buy rating on Strategy and maintained a $500 12-month price target, despite the stock trading near $165 and being down over 43% year-to-date. Analysts argued the upside is justified due to Strategy’s leveraged exposure to Bitcoin price movements and volatility in its Bitcoin premium.
Strategy has sold more than 22 million shares over the past four weeks without disrupting market liquidity. It remains the world’s largest Bitcoin treasury company, holding 671,268 BTC, and TD Cowen projects this could rise to ~835,000 BTC by FY2027, positioning the firm strongly for any future “crypto spring.”
Source: The Block
