Strategy has gone five consecutive weeks without purchasing bitcoin. Rather than buy, the company raised $544.5 million by selling about 5.4 million MSTR shares last week and directed the proceeds toward its cash reserve.
According to a Form 8-K filed Monday, Strategy’s bitcoin holdings were unchanged at 843,775 BTC, bought at an average price of $75,476 for a cost basis of $63.69 billion. The company’s U.S. dollar reserve rose to $3.75 billion, an increase of roughly $525 million, and it repurchased $25 million of its STRC preferred stock. Saylor said the reserve now covers about 2.1 years of preferred dividend obligations.
The prolonged pause removes a reliable source of demand from the bitcoin market. Strategy has been the largest corporate holder of the asset, and for years a purchase disclosure landed almost every Monday. Its retreat to the sidelines, paired with a swelling cash pile, signals a company prioritizing balance-sheet defense over accumulation while bitcoin trades near $63,000, well under its average purchase price.
The retrenchment traces back to strain in Strategy’s funding machine. Its STRC preferred stock has fallen well below the $100 level it was engineered to hold, throttling the flywheel that let the company issue shares to buy coins.
Strategy reports second-quarter earnings after the market close Thursday.
Related Listen: Strategy Sells $216M in Bitcoin. Is Saylor a Buyer or a Seller Now?: Bits + Bips
The post Strategy Extends Its Bitcoin Buying Pause to Five Weeks, Sells $544.5 Million of Stock to Build Cash appeared first on Unchained.
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