Strategy Pauses Bitcoin Buys Amid Shift in Business Model
Strategy, the world's largest Bitcoin treasury company, has paused its regular Bitcoin purchases. The last reported purchase was during the week of June 15 through June 21, when it bought 520 BTC for $35 million, an average purchase price of $67,068.
This is a significant shift in Strategy's approach, following its Bitcoin sale in late May and subsequent sales in late June and early July. The company has since reported that it is no longer using the 'flywheel' strategy, which relies on issuing more equity to buy Bitcoin when the stock trades at a premium to its net asset value (NAV).
Strategy's stock currently trades at 0.60 times NAV, although this rises to about 1 times NAV when accounting for enterprise value and capital structure obligations.