MicroStrategy 'Back in Business': Three Reasons Company May Resume Bitcoin Buys
After a ten-week hiatus, MicroStrategy's Michael Saylor announced 'We're Back' in a two-word post that sent shockwaves through the crypto market. While some interpreted this as just a slogan, three key factors suggest the company is gearing up to resume its Bitcoin buying spree.
The first reason lies in MicroStrategy's finances. The company has almost offset its debt with its USD assets, reducing net leverage to 0.1%. This shift has allowed Strategy to accumulate $5.10 billion in a reserve for dividend payments, which should provide the necessary liquidity for further Bitcoin purchases.
Another factor supporting this resumption is the recent performance of STRC, MicroStrategy's preferred share. After hitting a 12-month low of $71.25, STRC has recovered to trade near its target price of $100, with CEO Phong Le stating that repurchasing shares below $100 would be 'a regular and disciplined manner.'
Finally, Saylor's post was accompanied by a chart showing 840,447 coins worth $65.72 billion, reinforcing the possibility that MicroStrategy may soon restart its Bitcoin buying program.