Strategy pauses bitcoin buys for 4 weeks as $9.3B loss mounts

Strategy Inc. went a fourth consecutive week without buying bitcoin, its longest pause since the accumulation campaign began, as unrealized losses on its 843,775 BTC reserve reached $9.3 billion.

"We're gonna need another color," Executive Chairman Michael Saylor posted on X on July 26 alongside the company's bitcoin acquisition chart, which showed 113 purchase events since 2020.

Strategy's last confirmed purchase was 520 BTC for $34.9 million between June 15 and June 21 at an average price of $67,068, according to its SEC filings. Since then, the company has raised $263.5 million through MSTR share sales without deploying the proceeds into bitcoin, instead building its dollar reserve to $3.225 billion. The company still has authorization to sell up to $23.53 billion of additional common stock under its at-the-market offerings.

The buying pause comes as Strategy's common shares trade at $91.67, down 84% from their November 2024 peak, and its preferred stock STRC remains below its $100 par value at about $85. The company reports second-quarter results on July 30, which will offer the first look at how its new capital framework — including a $1 billion common stock buyback and a BTC monetization program permitting up to $1.25 billion of bitcoin sales — is reshaping its balance sheet.

Saylor's Sunday posts have historically preceded Monday bitcoin purchase disclosures, but that pattern has weakened. A June 28 post was followed by a new capital framework rather than a buy, and a July 5 post preceded the largest bitcoin sale in the company's history. The latest post, which Saylor captioned with a question about adding a new color to the chart, follows the company's adoption of a revised metric framework on July 23 that redefined its multiple to net asset value calculation.

Under the new framework, Strategy calculates Net Reserve at $36.6 billion — the value of its $55.6 billion bitcoin reserve plus $3.2 billion in dollar reserves, minus $6.8 billion of out-of-the-money convertible debt and $15.5 billion of notional preferred stock. The company also set its BTC Breakeven ARR at 3.22%, estimating the minimum annual bitcoin growth rate required to cover its financing costs before restructuring may need consideration.

With bitcoin trading near $64,600 as of July 26, according to CoinGecko data, Strategy's position is roughly $9.3 billion below its $63.69 billion total acquisition cost. The company's average purchase price of $75,476 per bitcoin means a recovery to that level would require a 17% rally from current prices.

The pause and the new metric framework reflect the central challenge facing Strategy during the current downturn. Its bitcoin reserve remains the largest held by any public company, but common equity performance now depends on bitcoin prices, financing costs, preferred-share valuations, and the company's ability to issue new shares above net asset value — a condition that has become harder to meet as MSTR's premium has narrowed.

This article is for informational purposes only and does not constitute investment advice.