Strategy Shifts Focus from Buying More Bitcoin
Strategy, led by Michael Saylor, has announced a change in its Bitcoin buying plan. The company will no longer use all of its newly raised capital to buy BTC. Instead, it will split its new capital between purchasing Bitcoin and building up its U.S. dollar reserves.
The decision comes after the firm reported an $8.2 billion net loss in Q2, largely due to the decline in the value of its BTC holdings. The company's management stated that they will continue to sell Bitcoin when it is financially advantageous to do so.
Strategy has not made a new BTC purchase in over a month and instead focused on building liquidity by raising $17.06 billion through at-the-market stock offerings and repurchasing convertible notes. The company's U.S. dollar reserve now stands at $3.75 billion, enough to cover preferred dividend payments and interest expenses for more than 2.1 years.