Strategy Aims to Restart Bitcoin Buying Once Cash Reserves are Built Up
Strategy's CEO Phong Le sought to reassure investors that the company plans to resume buying Bitcoin later this year. In an interview, he stated that the firm will add more BTC to its treasury once it has finished building up its cash reserves and stabilizing its preferred stock, STRC.
The recent sale of 1,690 BTC for $108.6 million was done at a loss relative to current market prices, with an average purchase price of $75,385. However, Le explained that the move was a short-term trade-off to protect the capital structure and maintain liquidity.
Strategy's preferred stock has been trading below its par value of $100, currently sitting at $95.32. The company is working to build up its cash reserves to pay dividends on this stock, which now stand at $4.65 billion.