Key highlights:
- Strategy hasn’t bought any Bitcoin during the last two weeks
- The company has sold $263.5 million worth of MSTR stock last week
- Executives say that the company remains committed to its Bitcoin strategy
Strategy, the largest public holder of Bitcoin, continues to pause its BTC buying strategy. The company hasn’t made any Bitcoin purchases during the week ending July 19, marking the second straight week of no BTC buys. Instead, the company is now focusing on strengthening its cash position, especially by selling its MSTR stocks.
According to reports, Strategy has sold about $263.5 million worth of MSTR stock between July 13 and 19. This move increased the company’s cash reserves to $3.225 billion. With no recent Bitcoin purchases reported, the treasury remains unchanged at 843,775 BTC.
Strategy did not buy Bitcoin for two straight weeks
Michael Saylor’s Strategy (formerly known as MicroStrategy) has not bought or sold any BTC over the past two weeks. Although the company previously sold a portion of its Bitcoin portfolio- $216 million in Bitcoin- it has temporarily paused its buying spree.
Despite this pause, Strategy continues to be the largest Bitcoin treasury company, with a total of 843,775 BTC, which it accumulated at a cost of around $63.69 billion. The firm bought these coins at an average price of $75,476 per BTC. Even during the recent crypto market crash, the company stood firm in its Bitcoin accumulation portfolio.
As of now, Strategy holds around 4% of the cryptocurrency’s maximum supply of 21 million. But, due to the recent market correction, the company has faced significant losses as BTC is now trading below its average purchase rate. Thus, the firm’s BTC holdings are now sitting at an unrealized loss of about $9 billion.
However, the company executives confirmed that Strategy remains committed to its crypto strategy despite its recent pause. According to CEO Phong Le, the firm still plans to accumulate Bitcoin on a long-term basis. He added that the team would start reviewing its debt risks only if the Bitcoin price falls below $10,000.
MSTR stock sale strengthens cash reserves
While Strategy has paused its Bitcoin accumulation strategy, the platform is now focusing on strengthening its cash reserves. According to an official filing with the Securities and Exchange Commission (SEC), Strategy has offloaded 2,732,318 MSTR shares, bringing in $263.5 million in net proceeds.
Following the latest MSTR stock sale, the shares remain relatively flat. The stock closed on July 17 at $94.85, with a marginal 0.87% uptick. During the pre-market hours, the shares surged to $96.15, up 1.37%.
The company’s US dollar reserves have now reached $3.225 billion, surging by $225 million. As the company hasn’t bought any BTCs during the past two weeks, the latest move indicates that Strategy is building a stronger cash position. With no BTC purchases, the company is putting greater focus on maintaining liquidity and strengthening its balance sheet.
This Bitcoin news comes amid Michael Saylor’s focus on the controversial Bitcoin Improvement Proposal (BIP-110). He has raised his voice against this proposal multiple times. He believes that the upgrade would be more dangerous than the risks it tries to sort out, as CoinCodex reported today.
Source:: Strategy Skips Bitcoin Purchase This Week, Sells MSTR Shares to Raise $263M