Strategy Inc Pauses Bitcoin Buys Amid Cash Reserve Buildup

Strategy Inc, a company that has made corporate Bitcoin accumulation its business model, has paused buying Bitcoin. As of late July 2026, it will not make any new purchases for at least five weeks. The firm is redirecting capital towards rebuilding cash reserves and stabilizing its preferred equity instruments.

The company's $2.2 billion cash buffer was funded by equity sales and preferred share offerings designed to cover dividend obligations across various series: STRC, STRF, STRE, STRK, and STRD. Strategy also repurchased $25 million of its own STRC preferred stock, a move that had never happened before.

STRC is a variable-rate perpetual preferred stock with a base annual dividend of 12%. However, it has been trading between $86 to $88, significantly below its $100 par value. This means investors who bought at par are sitting on paper losses, and the gap signals the market's uncertainty about the instrument's risk profile.

The repurchase is actually a rational capital allocation move. Strategy is effectively buying back its own debt-like instrument at a discount, reducing future dividend obligations and supporting the trading price simultaneously.