Strategy Extends Bitcoin Buying Pause While Growing Its USD Reserve
Michael Saylor’s Strategy (formerly MicroStrategy) continues to refrain from increasing its Bitcoin stash amid market uncertainty and a decline in its stock performance. Instead, the NASDAQ-listed business intelligence firm is focusing on rebuilding its USD reserve.
In the past week alone, Strategy added $225 million to its cash holdings, bringing the total USD reserve to over $3.2 billion. The company’s Bitcoin holdings remain unchanged at 843,775 BTC, acquired for approximately $63.7 billion at an average price of $75,500 per coin. The current value of its crypto stash is roughly $10 billion lower, leaving the firm significantly underwater.
Recent months have seen a shift in Strategy’s approach. The company has made a couple of Bitcoin sales, including a record sale earlier this month of over 3,500 BTC for about $216 million. It also launched the Digital Credit Capital Framework to enhance liquidity for covering monthly dividend payments and to increase long-term Bitcoin exposure. The USD reserve, now at $3.2 billion, is sufficient to cover dividend payments for over two years.
While this pivot from consistent Bitcoin purchases has been described as a prudent step, some analysts remain skeptical about the long-term viability of Strategy’s Bitcoin strategy.