Strategy Aims to Resume Buying Bitcoin as Balance Sheet Strengthens

Strategy CEO Phong Le believes that Bitcoin accumulation will continue later this year. The company has been selling Bitcoin to prop up its balance sheet and cover operating expenses, but Le promises to resume buying by the end of the year.

Since June 22, Strategy (MSTR) has sold four times more Bitcoin than it has bought, with a total loss of $108.6 million on its last sale. However, the company's new capital management plan appears to be working, with U.S. dollar cash reserves now standing at $4.65 billion.

The company's STRC preferred stock offering has also seen a significant increase in value, trading at $95 compared to a low of $75 this summer. Le believes that the company is becoming more strategic about how it deploys Bitcoin, and with a stronger balance sheet, it will be able to resume buying.

However, everything still depends on the price of Bitcoin, which is down 27% for the year and trades at just $64,000. Strategy acquired its 840,447 BTC at an average price of $75,385, making it difficult for the company to continue reporting massive unrealized losses.