Strategy Pauses Bitcoin Buying Again, Redeems $176.3 Million in STRC

Strategy has halted its bitcoin buying spree once again, just one week after resuming purchases. This time around, the company opted to redeem $176.3 million worth of STRC preferred stock instead, which it used from a U.S. dollar cash account.

The redemption of 1,810,885 shares of STRC was part of Strategy's overall strategy to manage its finances and maintain liquidity. The company currently holds $5.1 billion in dollar reserves and $1.44 billion in dollar cash, with the latter available for deploying funds, including for bitcoin purchases.

Strategy had resumed buying bitcoin on August 24 after a roughly 10-week gap, purchasing 4,603 BTC at an average price of $80,318 per bitcoin. However, it appears that this latest pause is not a surprise, as the company has previously sold some of its bitcoin to strengthen its financial structure and meet obligations such as preferred dividends.

In July, Strategy posted a loss of $8.22 billion in its quarterly results, but CEO Phong Le had assured investors that there was no need to worry about the book loss. The company's management is also responding to MSCI's index inclusion rules, with Chairman Michael Saylor and CEO Phong Le asking MSCI to withdraw a rule that could exclude Strategy from global indexes.