An analysis said Strategy’s recent bitcoin sale could be a chance to restore market confidence rather than a short-term negative. It said the company clarified its fund-management principles, reduced financial uncertainty and could also support longer-term bottom formation in bitcoin prices.

CoinPost, a blockchain media outlet, reported on July 7 that U.S. asset manager Grayscale analysed that Strategy’s recent bitcoin sale appeared to have shocked the market, but ultimately increased trust in the company’s financial soundness and fundraising structure.

The key to the assessment was not the fact that it sold bitcoin but the principles under which it sold. Strategy disclosed its Digital Credit Capital Framework on June 29 and formalised a policy that it could combine new share issuance with bitcoin sales to maintain cash reserves needed for preferred-share dividends. The board also approved a “BTC monetisation programme” that can allow bitcoin sales of up to $1.25 billion.

The first execution also came immediately. Strategy sold 3,588 bitcoin for about $216 million from June 29 to July 5, and used the funds as resources for paying preferred-share dividends.

Grayscale said the step put pressure on bitcoin prices in the short term, but placed greater significance on the fact that it increased the company’s financial stability.

The market has repeatedly raised concerns about Strategy’s cash liquidity. The company holds about $52 billion worth of bitcoin, but carries about $7 billion in debt and preferred-share dividend obligations of less than $2 billion a year. In late May in particular, dollar reserves fell to about $870 million, cutting dividend-paying capacity to about six months and heightening market anxiety.

The situation changed significantly after the sale. Dollar reserves rose to about $2.55 billion, and the period it can cover preferred-share dividends expanded to about 17 months.

Grayscale assessed that Strategy’s clear principle of keeping cash reserves for dividend payments above a certain level led to a recovery in investor trust.

A market reaction also emerged. Prices of STRC, a digital credit preferred share issued by Strategy, have recently rebounded, which was interpreted as a sign that investors are starting to take the company’s fund-management strategy positively.

Grayscale said the case could also have a positive impact on the bitcoin market. It explained that because the company did not dispose of holdings without a plan but balanced assets and cash under a pre-disclosed framework, the uncertainty felt by the market could decline.

Still, the possibility of additional sales remains. Strategy’s board has approved the BTC monetisation programme of up to $1.25 billion, and the company could proceed with further sales if needed under the same principle.

Grayscale forecast that if Strategy continues to keep consistent fund-management principles and maintain market trust, the recent step could contribute to forming a more solid price floor beyond a short-term shock in bitcoin.