Strategy hints at renewed Bitcoin buying after 10-week pause as traders watch cash and STRC
Strategy may be nearing a return to Bitcoin purchases after a 10-week pause, according to how traders interpreted recent posts from Executive Chairman Michael Saylor. The company has not added to its BTC holdings since June 22, when it bought 520 Bitcoin at $67,068 each, and it has sold Bitcoin four times since then. In August, Strategy raised $3.28 billion in new funds, but kept the proceeds in U.S. dollar cash rather than deploying them into BTC. Three financial changes are drawing attention. Strategy now holds about $6.69 billion in cash against roughly $6.71 billion in convertible note debt, leaving net leverage at just 0.1%, according to the company. The gap between cash and debt that had worried traders over the summer has effectively disappeared, and MSTR rose 12% last week. At the same time, the company’s dividend reserve increased from $3.75 billion in July to $5.1 billion. Another key variable is STRC, Strategy’s 12% dividend preferred stock, which is intended to trade around $100. It closed at $97.33 on Aug. 28, up from a 12-month low of $71.25. CEO Phong Le said the company plans orderly repurchases if STRC trades below $100. Any money used for buybacks cannot be used to buy Bitcoin, so the stock’s move closer to par is being watched closely ahead of the next weekly report expected on Aug. 31.








