Strategy Halts Regular Bitcoin Buys Amid Market Shift

Michael Saylor's Strategy has paused its regular Bitcoin buys for five weeks. This marks another shift in the company's approach, following a series of Bitcoin sales in late May and June.

The last reported purchase was during the week of June 15 through June 21, when Strategy bought 520 BTC for $35 million, an average price of $67,068 per coin.

This pause is significant because Strategy's flywheel strategy relies on the company's stock trading at a premium to its net asset value (NAV). However, current market conditions have made this unlikely, with Strategy's stock trading at 0.60 times NAV.

The company also needs cash reserves to fund its preferred stock dividend, which is currently set at 12% and requires significant funding. With $3.75 billion in cash reserves, covering over two years of expenses, Strategy has chosen not to buy more Bitcoin for now.