Strategy has halted Bitcoin purchases for four consecutive weeks, marking its longest pause in two years. The company is set to release its Q2 earnings on Thursday, July 30, after US markets close.
According to SEC filings, the last Bitcoin purchase was made for the week ending June 21. Since then, Strategy has been selling Bitcoin instead of increasing its holdings.
For years, the stock traded at a premium compared to its Bitcoin assets, a metric known as mNAV. This premium allowed Strategy to issue shares above Bitcoin’s value and increase Bitcoin per share for investors.
However, the model falters when mNAV approaches parity. This happened in late June, with mNAV dropping to about 0.99, its first-ever dip below 1, before climbing back to roughly 1.03.
Currently, Strategy’s Bitcoin holdings are valued below their purchase price, with management estimating a break-even point closer to 1.22.
Between June 29 and July 5, Strategy sold 3,588 BTC across two transactions, raising approximately $216 million. The funds were used to cover preferred stock dividends and boost cash reserves, which reached $3.225 billion by July 20 under a new capital framework introduced in late June.
Strategy reported a $14.5 billion operating loss in Q1, driven by Bitcoin’s market price decline. Consensus estimates from LSEG suggest a potential rebound to $3.86 billion in Q2 operating income, though some projections predate Bitcoin’s recent drop.
The upcoming earnings report will reveal if Strategy plans to continue raising capital without buying more Bitcoin or shift its approach in response to market conditions.
