Strategy's decision to sell nearly $467 million of its MSTR common stock last week without purchasing any additional bitcoin is being seen by analysts as evidence that the company is following through on its recently unveiled Digital Credit Capital Framework.
In notes published on Monday, analysts at Benchmark and TD Cowen said Strategy's move to grow its USD reserve to $3 billion while leaving its bitcoin holdings unchanged at 843,775 BTC strengthens its balance sheet and reinforces confidence in its preferred-stock financing model.
'Balance sheet discipline'
TD Cowen reiterated its Buy rating and $260 price target on Strategy's (MSTR) shares, arguing the latest filing is an early example that management is following through on its capital allocation strategy outlined roughly two weeks ago.
On Monday, Strategy's stock was trading near a long-term low at $91.50, according to The Block's crypto equities price page.
