Galaxy Research called a new financial stabilisation plan unveiled by Strategy, the listed company with the largest bitcoin holdings, a wise move that can delay near-term funding pressure.

CoinPost, a blockchain media outlet, reported on Sunday that Galaxy Research analyst Alex Son said Strategy’s recently announced Digital Credit Capital Framework gave the company time to respond to market liquidity concerns.

Strategy set a new policy for managing its dollar reserves in late June and raised the dividend rate on its preferred stock, STRC, to 12 percent a year from 11.5 percent. It also unveiled a preferred securities and MSTR common stock buyback programme, along with a bitcoin monetisation programme. The company has already approved the possibility of selling up to $1.25 billion worth of bitcoin.

The key to the steps is boosting its cash buffer. Strategy raised more than $1 billion through common stock sales and formalised a policy of holding at least 12 months of operating funds in cash. That extended the period it can meet obligations such as preferred dividends to about 17 months from previous levels. Son said, "This does not solve every problem, but at least near-term liquidity concerns have been pushed back for a considerable time."

Structural burdens still remain. Strategy continues to maintain a large amount of preferred securities, and $6.7 billion of convertible debt is set to mature in 2027 and 2028. Son said the company’s long-term sustainability depends on whether it can continue to finance itself using bitcoin, MSTR and preferred securities.

The most controversial part is the potential for selling bitcoin. Son said selling bitcoin is not the best choice but could be sufficiently justified. Strategy’s enterprise value has been built on market expectations that it is an investment vehicle applying leverage to bitcoin. If that structure weakens, a fall in bitcoin prices could lead to a drop in MSTR shares, which could in turn fuel concerns about further sales, he said.

Even so, Son stressed that Strategy still holds a huge amount of bitcoin. He said selling some bitcoin to stabilise its capital structure and protect preferred shareholders could be a realistic choice for keeping the company running steadily until market conditions improve.

Son also laid out alternatives to selling bitcoin. He said borrowing against some of the bitcoin held or using options trading to generate income could be an interim solution. Counterparty risk exists, but using only part of its assets rather than its entire holdings could secure liquidity while keeping risks under control, he said.

Strategy management has also left open the possibility of bitcoin-backed loans. Phong Le (폰 레), Strategy’s chief executive officer, said in December that the company was not then borrowing against bitcoin, but could actively consider it if major financial institutions begin offering related services in earnest.

Galaxy Research said the steps do not completely resolve the crisis, but are meaningful in that Strategy has bought time to get past near-term liquidity issues. Markets are expected to watch whether Strategy actually sells bitcoin or opts for other monetisation options such as collateralised loans and options strategies.