MSTR Stock: Strategy Inc. Hints at New Move After Month-Long Bitcoin Purchase Hiatus

Strategy Inc., the company behind the MSTR ticker, has been quiet on its Bitcoin acquisition front for four weeks. This represents its longest buying hiatus in two years. The firm's CEO, Michael Saylor, hinted at a new move by sharing a visualization of Strategy's Bitcoin purchases on Sunday with the message 'We're gonna need another color.'

This marks his fifth such hint since the company's last confirmed acquisition on June 22. Saylor's previous hints have historically signaled an imminent Monday announcement of a new Bitcoin purchase, but this pattern has recently faltered.

Strategy's enterprise mNAV (market capitalization relative to net asset value) dropped below parity on June 27, which means issuing equity to fund Bitcoin purchases would create shareholder dilution rather than enhancing per-share ownership. Additionally, the company's preferred share dividend commitments represent a constraining factor, with the STRC preferred security having its rate elevated to 12% and requiring cash payments.

The organization has been directing funds towards reserves rather than Bitcoin acquisitions, and its dollar reserve now totals $3.225 billion, providing coverage for approximately 1.8 years of dividend requirements. Strategy is scheduled to release second-quarter financial results following the conclusion of U.S. market trading on Thursday, July 30.