- Strategy hadn’t purchased Bitcoin for the ninth consecutive week, missing the asset’s rise from roughly $62K to almost $80K over the week.
- The company still holds 840,447 BTC, making it the largest public DAT company in the world, with a portfolio that surpasses the combined Bitcoin holdings of the US, China, and the UK.
- It sold $2 billion worth of common shares over the past week to repurchase STRC preferred shares and increase its cash reserves to $5.1 billion, while setting aside $1.585 billion for future Bitcoin purchases.
Strategy (MSTR) appears to have missed the boat on Bitcoin (BTC) before prices skyrocketed from around $62K to nearly $80K over the week. Instead of buying more before the coin’s value went soaring, it sold more of its MSTR common stock to repurchase STRC preferred shares and raise cash reserves.
Ninth-Consecutive Pause in Strategy’s Bitcoin Acquisitions
On Monday, Strategy disclosed in a filing with the US Securities and Exchange Commission (SEC) that it still hadn’t acquired Bitcoin. This marks the ninth consecutive week since June 22 that it hasn’t topped up its digital asset treasury (DAT).
Over that period, the business had notably offloaded 6,916 BTC for approximately $428 million at roughly $61,885 per BTC. That’s well below its all-time average purchase price of $75,385 per BTC, going back as far as August 2020. It also doesn’t yet include the 32 BTC it sold in early June, which rattled markets.
Nonetheless, Strategy remains the largest public company by Bitcoin or crypto portfolio value. It still maintains 840,447 BTC on its balance sheet, surpassing even the combined 580,938 BTC holdings of the US, China, and the UK. Additionally, it has more than the 762,287 BTC held by BlackRock as backing for its iShares Bitcoin Trust Exchange-Traded Fund (ETF).
Selling More Common Shares
Rather than stacking more Bitcoin as technical and fundamental indicators presented a potential launchpad for the premier crypto asset, Strategy again sold more than 18.26 million MSTR shares for over $2 billion.
The company allocated $136.4 million of its recent offering’s proceeds to repurchase 1.43 million shares of STRC. Meanwhile, it raised its total US dollar cash reserves to $5.1 billion. Its reserves are currently enough to cover up to 3.9 years of stock dividends and debt interest payments.
Interestingly, Strategy has set aside $1.585 billion for potential Bitcoin purchases in the near future.
Failure to Capitalize on the Dip and Selling at the Bottom
Strategy again drew widespread criticism for supposedly diluting its MSTR shares to prioritize preferred shareholders. Members of the crypto community also called out the company and its Executive Chairman Michael Saylor for selling their BTC holdings at a discount compared to their acquisition prices.
What’s more, critics pointed out that Strategy failed to capitalize on Bitcoin’s recent bottom before prices started spiking, which means it now has to buy BTC at a higher price.
