After a ten-week hiatus, Strategy (MSTR.US) resumed buying and spent $370 million to increase its holdings of bitcoin
After a ten-week pause, Strategy Inc. has resumed its Bitcoin purchases, returning to its signature accumulation strategy. Previously, the cryptocurrency bear market had put pressure on the company's stock price and weakened market confidence in its financing model.
Golden Ten Data APP reports that Strategy Inc. (MSTR.US) has resumed Bitcoin purchases after a ten-week pause, returning to its signature accumulation strategy. Previously, the cryptocurrency bear market put pressure on the company’s stock price, weakened market confidence in its financing model, and prompted a restructuring of its balance sheet. According to regulatory filings submitted on Monday, the Bitcoin treasury company co-founded and led by Michael Saylor purchased approximately $369.7 million worth of Bitcoin in the week ending August 30. As the world’s largest corporate buyer of Bitcoin, Strategy also raised about $602.8 million through the issuance of common stock to fund the purchase and repurchased approximately $151.8 million worth of preferred shares.
Strategy’s renewed buying comes as conditions for its financing model have slightly improved. Bitcoin has rebounded to nearly $80,000, boosting Strategy’s stock performance and pushing the company’s market capitalization closer to the value of its Bitcoin holdings. The company currently holds about $7.3 billion worth of Bitcoin.
Meanwhile, the company is continuing to reshape its balance sheet. Last week, Strategy established a separate cash pool in addition to its existing reserves, granting management more flexibility to meet preferred share dividend payments, debt repayments, and other corporate operational needs. The two reserve pools are valued at $5.1 billion and $1.61 billion, respectively.
Nevertheless, the recovery remains limited. Strategy’s stock price is still significantly below the higher valuation levels seen early in this cycle—when stock issuance provided a more convenient channel to raise funds for Bitcoin purchases. Although the recent rebound has brought some improvement, it has yet to restore the earlier financing engine that supported its large-scale accumulation.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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