Strategy Builds $2.19B Cash War Chest to Ride Out Any Crypto Winter

What Did Strategy Do With Its Balance Sheet?

BTC treasury firm Strategy said it has increased its U.S. dollar reserve to $2.19 billion later than raising roughly $748 million through the sale of common shares. The move gives the company enough liquidity to cover interest and dividend obligations for about 32 months, according to TD Cowen’s TD Securities unit.

The cash raise follows a period of pressure on Strategy’s stock, which was trading near $165 at the time of writing, down more than 43% year-to-date. By building a larger cash buffer, the company is reducing near-term financing risk at a time when BTC prices and crypto-linked equities remain volatile.

TD Securities said the expanded reserve improves Strategy’s ability to continue operating even if market conditions remain fragile for an extended period.

“The move underscores the company’s and should alleviate concerns about its ongoing viability, even in a prolonged ‘crypto winter’ scenario,” analysts led by Lance Vitanza wrote. “Shoring up liquidity during times of stress is always prudent, in our view, and we believe all Strategy stakeholders are materially better off.”

Investor Takeaway

How Was the Capital Raised Without Disrupting the Market?

Strategy first outlined its plan to build a liquid cash buffer on Dec. 1, when it disclosed it had raised $1.44 billion to support preferred-stock dividends and interest on outstanding debt. Over the following four weeks, the company sold more than 22 million shares, a pace TD Securities said was broadly in line with .

That execution mattered. tradeing large amounts of stock too rapidly can weigh on share prices or signal distress. TD Securities noted that Strategy managed to add liquidity without disrupting market trading, easing concerns around .

“In moving so aggressively to shore up its balance sheet, Strategy has gone a long way toward putting to bed any lingering questions around its ongoing access to the capital markets,” the analysts wrote. “Concerns around the viability of Strategy’s balance sheet are overblown, in our opinion.”

The firm reiterated its purchase rating on Strategy and kept a $500 price target over the next 12 months, despite the sharp decline in the stock this year.

Why Does Liquidity Matter So Much for a BTC Treasury Company?

Strategy’s business model centers on holding large amounts of BTC on its balance sheet. The company currently owns 671,268 BTC, valued at more than $59 billion based on recent prices. That concentration gives shareholders leveraged exposure to BTC, but it also leaves the firm sensitive to drawdowns in the crypto market.

Cash reserves play a critical role in that structure. Interest payments, preferred dividends, and operating expenses must be met regardless of BTC’s price. By securing more than two and a half years of coverage, Strategy reduces the risk of forced asset sales or emergency fundraising during market stress.

TD Cowen expects Strategy to continue adding to its BTC holdings over time, forecasting that the company could own around 835,000 BTC by the end of fiscal year 2027. The analysts estimate intrinsic BTC value of about $380 per share in one year and $515 in two years, based on their assumptions.

“With potential upside to our target nahead 200%, we recognize that our price target may viewm ‘out of context,’” the analysts wrote, pointing to the volatility embedded in both BTC prices and Strategy’s trading premium.

Investor Takeaway

What Could Change the Outlook Going Forward?

Beyond balance-sheet mechanics, TD Cowen highlighted a regulatory development that could influence sentiment toward crypto-linked firms. The U.S. Federal Reserve has requested public feedback on a proposed “payment account,” sometimes described as a “skinny master account,” that could give certain eligible institutions limited access to Fed payment rails.

Such access, if extended to crypto-related firms, would mark a notable step toward deeper integration with the traditional financial system. TD Cowen said this backdrop makes a rebound in the sector plausible.

The analysts wrote that “a ‘crypto spring’ looks at least as likely to us,” citing both improved liquidity at Strategy and signs of regulatory openness. Still, they acknowledged that volatility remains high and outcomes will hinge on BTC prices, capital markets conditions, and policy decisions.

For now, Strategy’s larger cash reserve gives it breathing room. Whether that proves enough to justify bullish price targets will depend on how BTC and broader over the coming quarters.