Saylor Signals End to MicroStrategy's Bitcoin Buying Freeze

Michael Saylor's recent tweet has sparked speculation about MicroStrategy's plans for Bitcoin. The company, now renamed Strategy, had not made any new purchases in 10 weeks.

The reason for this hiatus was largely due to financial constraints. With roughly $6.69 billion in dollars and a debt of around $6.71 billion on convertible notes, Strategy's net leverage stood at 0.1%. This meant that the company was operating with a very tight margin, making it difficult to buy more Bitcoin.

However, with the recent influx of fresh capital, amounting to $3.28 billion in August, Strategy has been able to address this issue. The funds were not used to buy Bitcoin but instead went into a reserve for dividend payments. This reserve now holds around $5.10 billion, up from $3.75 billion in July.

The preferred share STRC, which pays a 12% dividend and is designed to trade at $100, has also seen its price increase. It closed at $97.33 on August 28, bringing the company's total debt to over $10 billion. Strategy plans to repurchase STRC shares if they trade below $100.

Saylor's tweet mentioned a chart of 840,447 coins worth $65.72 billion, leading some to speculate that MicroStrategy may resume buying Bitcoin. However, it is also possible that the company did not make any new purchases last week, given Saylor's previous declarations and the fact that the buying freeze continued for five weeks after he declared Bitcoin had won in July.