Strategy Ditches Bitcoin Buying, Focuses on Capital Restructuring Efforts

Strategy, formerly known as MicroStrategy, has shifted its Bitcoin accumulation strategy to focus on capital restructuring. For six years, the company's approach was straightforward: buy more Bitcoin. However, in recent months, Strategy has taken a different path.

In July and August of this year, the company sold approximately 1,638 BTC for around $104.7 million, boosting its USD cash reserves from $3.2 billion to $4.0 billion. This sale wasn't about cashing out, but rather used some of the proceeds to repurchase preferred shares and pay dividends on STRC preferred stock.

The company also raised $290.6 million through common stock sales during this period. Strategy has been selling Bitcoin in chunks, with a smaller sale in June worth around $2.5 million going toward STRC preferred distributions.

After the recent sale, Strategy still holds 842,138 BTC. The company's capital restructuring effort includes repurchasing $1.5 billion in 0% convertible senior notes due 2029 for $1.38 billion, a discount of about $120 million. This debt buyback was funded from existing cash reserves.

Strategy has overhauled its reporting to account for senior claims like preferred stock and convertible debt, providing net exposure figures instead of just total BTC held. The company's new posture as an occasional seller removes a reliable source of demand that traders have come to expect, and creates a different risk profile for its shareholders.