Strategy (MSTR) has not purchased any bitcoin since June 22, when it acquired just 520 BTC for approximately $35 million. The company has since shifted its immediate focus from accumulating bitcoins to strengthening its liquidity position.
During the week ending July 5, Strategy sold 3,588 BTC in two transactions. He sold 1,363 BTC for approximately $80.8 million on June 30, followed by another 2,225 BTC for $135.2 million. The sales generated approximately $216 million and reduced Strategy’s holdings to 843,775 BTC.
The company said the proceeds would help fund distributions of its preferred stock and replenish the portion of its U.S. dollar reserve used to make those payments. The reserve stood at approximately $2.55 billion after the sales.
On Monday, Strategy increased its US dollar reserve to approximately $3 billion. Based on annualized preferred stock dividends and interest on debt of approximately $1.76 billion, the reserve now provides about 20.4 months of coverage.
This liquidity cushion should give the strategy enough flexibility to navigate a prolonged bitcoin downturn without being forced to sell significant amounts of bitcoin at lower prices or raise capital on unfavorable terms.
