A new research note argues the company with one of the largest corporate bitcoin holdings has multiple ways to raise cash without selling its BTC. Following an overhaul of its capital management amid investor pressure over its preferred-stock structure, the central question is whether the firm can secure liquidity while preserving its bitcoin position.
Why Selling Bitcoin Became a Concern
Investor scrutiny intensified in recent weeks as the company reworked elements of its capital structure, including preferred-stock terms. That pivot prompted speculation over whether the firm might be forced to liquidate part of its bitcoin treasury to meet funding needs or address balance-sheet pressures.
Research Outlines Alternatives to Selling BTC
According to a new analysis from Galaxy Research, the firm has several potential funding avenues that would allow it to maintain its bitcoin exposure while raising liquidity. Common options available to large corporate holders include:
- Secured borrowing against BTC: Using bitcoin as collateral for loans from institutional lenders to access cash without divesting core holdings.
- Debt financing: Issuing new convertible notes or traditional bonds to tap capital markets, subject to pricing and investor demand.
- Equity issuance: Raising funds through at-the-market (ATM) programs or other equity offerings, balancing dilution against liquidity needs.
- Derivatives-based monetization: Generating income via covered-call strategies or other structured hedges with regulated counterparties, designed to retain underlying BTC exposure.
What to Watch
The company has not announced a definitive path. Any funding decision will weigh cost of capital, market conditions, regulatory considerations, and counterparty risk. Investors are watching upcoming disclosures and earnings updates for clarity on timelines, structures, and the extent to which management can preserve its bitcoin stack while meeting liquidity objectives.