Strategy, the largest corporate holder of Bitcoin, extended its pause in Bitcoin purchases for a fifth consecutive week, opting instead to strengthen its cash position and repurchase preferred shares as it reassessed its treasury allocation strategy.
The company added approximately $525 million to its cash reserves during the latest reporting period, bringing total cash holdings to about $3.75 billion. Its Bitcoin holdings remained unchanged at 843,775 BTC, marking the longest period without a purchase in roughly two years. The company’s most recent Bitcoin acquisition occurred on June 22, when it purchased 520 BTC.
Strategy allocated additional capital to cash reserves instead of acquiring more Bitcoin, extending its longest pause in Bitcoin purchases in nearly two years.
Share Sales Fund Cash Position
The increase in cash reserves followed the sale of approximately 5.4 million MSTR shares through the company’s at-the-market equity program between July 20 and July 26. Rather than using the proceeds to expand its Bitcoin holdings, Strategy retained the funds to strengthen liquidity.
The company also repurchased $25 million of its STRC preferred stock, representing the first buyback under a $1 billion share repurchase authorization approved by its board in late June.
The repurchase came after STRC had traded below its $100 par value since mid-May and reached record lows earlier this month. Market observers suggested the company was using capital raised through common share sales to support the preferred stock, instead of directing the proceeds toward additional Bitcoin purchases.
Some analysts also noted that Strategy had continued issuing MSTR shares despite the stock trading well below previous peak levels, while using part of the proceeds to build cash reserves and initiate preferred share repurchases. They argued that the approach reflected a shift in capital allocation priorities from expanding Bitcoin holdings to reinforcing the company’s broader capital structure.
Treasury Metrics Updated Ahead of Earnings
Last week, Strategy also revised several of its internal performance metrics. The company introduced a new measurement, net Bitcoin per share, which factors in approximately $22.2 billion of debt and preferred equity obligations when evaluating shareholder exposure to Bitcoin. It also updated its modified net asset value (mNAV) calculation, resulting in a reported ratio of about 1.02 times.
Analysts indicated that the revised methodology could provide investors with a different perspective on the relationship between the company’s market valuation, capital structure, and Bitcoin holdings. They also noted that issuing additional shares to finance future Bitcoin purchases could become less accretive to existing shareholders if valuation metrics remain near current levels.
The company also revised its treasury performance metrics, introducing net Bitcoin per share and updating its valuation methodology as it evaluates future capital allocation decisions.
Investors Await Quarterly Results
Based on current market prices, Strategy’s Bitcoin portfolio was estimated to be valued roughly $8.5 billion below its cumulative acquisition cost of approximately $63.69 billion. Despite the unrealized decline, the company has continued to maintain its Bitcoin position without announcing additional purchases.
Strategy is scheduled to report quarterly earnings later this week, with investors expected to closely monitor management’s comments regarding its treasury strategy, capital deployment plans, and potential future Bitcoin acquisitions.
The company’s upcoming earnings report is expected to provide investors with further insight into whether the recent emphasis on cash accumulation represents a temporary pause or a broader shift in its Bitcoin treasury strategy.
