Led by Michael Saylor, Strategy did not purchase any Bitcoin (BTC) during the past week, marking a notable shift from its long running accumulation strategy. Instead of deploying the 1.15 billion dollars raised through share sales into additional BTC purchases, the company increased its cash reserves to 2.55 billion dollars, aiming to build a more resilient balance sheet amid market volatility.
New financing framework introduced
According to filings submitted to the U.S. Securities and Exchange Commission (SEC), Strategy will maintain at least 12 months of cash reserves to cover debt obligations and preferred dividend payments. The company also announced a 1 billion dollar digital credit repurchase program and a separate 1 billion dollar share buyback plan. In addition, it established a mechanism that would allow Bitcoin sales if necessary to reinforce its cash reserves.
Strategy currently holds 847,363 BTC, representing more than 4% of the total Bitcoin supply. With an average acquisition cost of 75,651 dollars per Bitcoin, the company is facing billions of dollars in unrealized losses under current market conditions. Management also raised the STRC preferred dividend rate to 12% and stated that it will follow a more disciplined capital issuance strategy, signaling a new phase in its corporate Bitcoin treasury management.
