Strategy Buys More Bitcoin but Turns Attention to USD Reserve With $300M Injection
After hinting at buying more bitcoin on Sunday, Strategy’s co-founder and former CEO, Michael Saylor, announced on X that the firm had acquired another 520 BTC for $35 million. Thus, its total holdings have grown to 847,363 units, currently valued at almost $55 billion.
What’s more interesting about this announcement is the fact that the NASDAQ-listed business intelligence software company increased its USD reserve much more than the BTC acquisition.
Strategy has increased its USD Reserve by $300 million to $1.4 billion and plans to continue replenishing it to support the credit quality of its Digital Credit securities. The Saylor-founded firm made two major bitcoin purchases in the past couple of weeks, both for around $100 million. It also increased its USD reserve by the same amount.
Now, though, the difference is quite significant, as the firm has spent almost 10 times more for its USD reserve than for its bitcoin acquisition.
Perhaps the reason for this is the growing online scrutiny of Strategy’s STRC. Also referred to as Stretch, these shares are supposed to trade at $100, provide a stable yield to investors, and raise funds to buy more BTC.
However, they have deviated from their par price in the past few weeks, going well below $90 at one point. This raised some eyebrows in the community, with some analysts speculating that the company might have to sell more than 50,000 BTC in the next few years to cover expenses and dividend payments.