Strategy Halted Bitcoin Purchases as USD Reserve Grows

Strategy, a company known for its significant Bitcoin holdings, has made no new purchases of BTC in the week ending August 16. Its Form 8-K filing with the U.S. Securities and Exchange Commission confirmed that it held its position flat at 840,447 BTC. This comes after a period where Strategy sold 1,690 BTC for $108.6 million, redirecting proceeds towards preferred-stock obligations rather than adding to its core Bitcoin position.

Instead of buying more Bitcoin, Strategy sold 3,458,866 MSTR shares through its at-the-market program for $333.7 million in net proceeds. The company used this money to add $150M to its USD Reserve and repurchase $132M of STRC preferred stock. This move is seen as extending the company's financial runway rather than expanding its Bitcoin exposure.

Strategy's cost basis works out to $75,385 per Bitcoin, which is well above current spot prices trading near $64,268. Michael Saylor, Strategy's executive chairman, framed the moves in an Aug 17 post on X as extending the company's financial runway rather than expanding its Bitcoin exposure.