MicroStrategy Suspends Bitcoin Buying Amid Financial Constraints
MicroStrategy's Bitcoin accumulation strategy has been put on hold due to financial constraints. Since June, the company has not purchased any new BTC, instead selling some of its existing coins four times.
The company's CEO Phong Le reassured investors that Bitcoin accumulation will continue later this year once the company's balance sheet is stronger and its preferred stock offering regains value.
MicroStrategy has been building up its cash reserves, which now stand at $4.65 billion, covering operating expenses and dividend payments for the foreseeable future. This reserve was partly built by selling $653.1 million worth of company shares, outweighing the $108.6 million from the sale of 1,690 BTC.
The company has also had some success in propping up the value of its STRC preferred stock offering, which traded as low as $75 but is now back to almost par at $95.