Strategy Resumes Bitcoin Purchases Following Ten-Week Pause

Bitcoin Magazine

Strategy Resumes Bitcoin Buying After 10-Week Hiatus

Bitcoin treasury firm Strategy ended its 10-week acquisition pause last week by purchasing nearly $370 million worth of the leading cryptocurrency, as revealed in a company announcement on Monday.

Securities and Exchange Commission filings indicate that Strategy acquired 4,603 bitcoins between August 24 and August 30 for a total of $369.7 million. The filing shows that each coin was purchased at an average price of $80,318.

This fresh acquisition follows a period beginning in June when Strategy temporarily halted its bitcoin purchases to concentrate on accumulating a cash buffer, executing stock buybacks, and occasionally offloading portions of its reserves.

“Strategy is evolving from one-way capital issuance to active capital management,” Strategy CEO Phong Le stated in June. “We intend to move between issuing securities when capital is attractive and repurchasing securities when our instruments trade at levels that make buybacks accretive. This flexibility is designed to create shareholder value, improve corporate performance, and strengthen the quality and market standing of Strategy’s securities in the eyes of investors.”

Currently, Strategy maintains $5.1 billion in its USD Reserve alongside $1.61 billion in its newly introduced USD Cash reserve, which was unveiled last week.

Altogether, the firm holds 845,050 bitcoins, valued at $65.8 billion based on current market prices.

Formerly known as MicroStrategy, the software company initially began acquiring bitcoin in August 2020 as a treasury tactic to enhance returns for shareholders throughout the pandemic.

To date, the business has allocated more than $63.7 billion toward bitcoin purchases, retaining its position as the largest corporate holder of the cryptocurrency globally. Its pioneering model has since inspired numerous copycat corporations to launch similar crypto-treasury frameworks.

Michael Saylor, the company’s founder and chairman, noted that Strategy is now pivoting its focus toward developing digital credit, offering high-yield options like its preferred equity product, STRC, backed directly by its bitcoin portfolio.

On Monday morning in New York, Strategy shares (NASDAQ: MSTR) traded slightly upward, though the stock remains down nearly 20% year-to-date.

Meanwhile, Bitcoin changed hands at $77,821 on Monday morning in New York, following a weekly high of $81,281. While the token remained flat over the prior 24 hours, it has posted gains exceeding 24% across a 30-day window.