Strategy paused Bitcoin acquisitions for the fifth consecutive week, opting instead to repurchase $25 million worth of its own preferred shares, known as Stretch (STRC). According to a recent filing and a post on X, the company sold over 5.4 million shares of its common stock through its at-the-market program between July 20 and 26, generating net proceeds of $544.5 million.
This marked the first buyback of the STRC product, which provides investors with Bitcoin exposure alongside dividend payments. Strategy’s Bitcoin holdings remain steady at 843,775 coins valued at more than $55 billion given the current price of $65,576 per coin.
Shifting Focus to Balance Sheet Strength
The move away from fresh Bitcoin purchases aligns with Strategy’s recent pattern of favoring cash accumulation rather than aggressive crypto buying. The company's cash reserves now exceed $3.75 billion, though this cash is not earmarked for repurchases, as clarified in regulatory filings.
CEO Phong Le emphasized that the stock buyback is intended to reinforce the company's balance sheet instead of signaling a retreat from Bitcoin. According to him, Strategy remains committed to long-term Bitcoin accumulation.
Strategy, formerly MicroStrategy, embarked on its Bitcoin buying spree in August 2020 amid the COVID-19 pandemic, spending close to $64 billion and becoming the largest public corporate holder of Bitcoin worldwide. Investors can gain exposure to Bitcoin via Strategy’s shares without directly purchasing the cryptocurrency.
On the Nasdaq, Strategy's common stock (MSTR) jumped nearly 7% on Monday, reaching almost $98 per share despite a roughly 40% decline for the year so far.
