Strategy Ditches Relentless Bitcoin Buying for Balance Sheet Overhaul

Michael Saylor's Strategy Inc. is undergoing a significant shift in its strategy. The company, once known for its relentless accumulation of Bitcoin, has decided to focus on strengthening its capital structure instead.

The new approach involves selling some of the company's tokens and issuing common stock to raise cash. This move comes after years of steady Bitcoin purchases, which were supported by a financing model built around share issuance and preferred stock.

According to regulatory filings, Strategy sold about $105 million worth of Bitcoin in the prior week and three million common shares worth $291 million. The company used some of the proceeds to lift its cash reserves to $4 billion and repurchased $81 million worth of its STRC preferred stock, which had been trading at a discount.

This overhaul is part of a broader plan unveiled by Strategy in June, which gave management more flexibility in areas such as selling Bitcoin, repurchasing securities, and protecting liquidity. Since the plan's announcement, Strategy has sold Bitcoin on multiple occasions.