Strategy's Bitcoin Buying Plans Hinge on Balance Sheet Strength

Strategy CEO Phong Le says Bitcoin accumulation will continue later this year once the company builds a stronger balance sheet and proports up the value of its STRC preferred stock offering.

Since June, Strategy has become a net seller of Bitcoin, instead focusing on building cash reserves and buying back its preferred stock. The company's U.S. dollar cash reserves are now $4.65 billion, which is expected to cover operating expenses and dividend payments for the foreseeable future.

The most recent round raised $653.1 million by selling Strategy shares, outweighing the $108.6 million from the 1,690 BTC sale. Shareholders are funding the balance-sheet repair through dilution.