Strategy Stock: Is the Bottom in Sight?Strategy Inc Class ABATS:MSTRSwissquoteStrategy stock has fallen by more than 80% since reaching its all-time high last July. This corrective phase is perfectly in line with Bitcoin's cyclical bear market, which follows the well-known four-year cycle, with bear market years occurring in 2014, 2018, 2022, 2026, and 2030. Strategy is the world's largest corporate holder of Bitcoin, having accumulated more than 800,000 BTC with a total value of approximately US$50 billion. The company's current market capitalization stands at around US$35 billion, significantly below the value of its Bitcoin holdings, highlighting a deeply oversold situation. Does this mean that the bottom in Strategy stock is now within reach? The chart below (Source: Strategy & Bloomberg) shows the ratio between Strategy's market capitalization and the value of the Bitcoin it holds. This ratio is currently below 1. Nevertheless, caution is still warranted because the company faces dividend payments this summer, while Bitcoin's cyclical bear market is expected to end at the end of next September. This summer will therefore represent an important stress test for Strategy, which has recently implemented a mechanism designed to comfortably meet its dividend obligations over the next 17 months. Strategy has allocated US$2.55 billion to a dedicated reserve that may only be used to pay: •dividends on its preferred shares (STRC, STRF, STRD, STRK), •interest payments on its convertible debt. This reserve provides approximately 17.4 months of coverage for current dividend and interest obligations, extending well beyond the expected end of Bitcoin's cyclical bear market. The company also has the option to sell up to US$1.25 billion worth of Bitcoin if necessary. •This authorization has already been approved by the Board of Directors. •If exercised, the coverage period would increase from approximately 17.4 months to nearly 26 months. In short, Strategy should be able to meet all of its financial obligations. With Bitcoin's cyclical low expected in about three months, Strategy stock should also establish its own cyclical bottom during the summer. The chart below shows the monthly Japanese candlestick chart of Strategy stock. The 2022 bear market ended with a trading range between the 78.6% and 96% Fibonacci retracement levels. Those retracement levels currently lie between US$35 and US$127. DISCLAIMER: This content is intended for individuals who are familiar with financial markets and instruments and is for information purposes only. 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