Strategy's Saylor Drops Hint of New Bitcoin Move After Month-Long Hiatus
Strategy Inc's Michael Saylor has hinted at a new move after a month-long hiatus from buying Bitcoin. His cryptic message 'We're gonna need another color' on July 26 was accompanied by a chart of the company's Bitcoin acquisition history, sparking speculation about an impending purchase. The post marked his fifth similar social media update since Strategy last confirmed a Bitcoin acquisition on June 22.
The firm has abstained from buying Bitcoin for four consecutive weeks, its longest buying drought in two years. Strategy's MSTR shares have declined to $91.67 after reaching $94.85 the week before. The company holds approximately 843,775 BTC with an average purchase price of $75,476, resulting in a significant unrealized loss at current Bitcoin prices.
The reasons behind Strategy's buying pause are complex and multifaceted. One factor is the firm's preference stock dividend obligations, which have increased fourfold over six months to $1.2 billion. Additionally, the company's mNAV (market capitalization divided by net Bitcoin holdings) has dropped below 1, indicating that issuing additional stock would actually reduce Bitcoin per share rather than increase it.
Strategy will release its second-quarter financial results following Thursday, July 30's U.S. market close.