Saylor posts chart as Strategy pauses bitcoin buys, $3B cash

Executive Chairman Michael Saylor posted a ‘What’s next?’ chart on July 19 showing Strategy Inc.’s 843,775 BTC position and the company’s acquisition history, but the post did not disclose a new bitcoin transaction or a funding source for any purchase. Strategy has not bought bitcoin since June 22.

The chart valued the holdings at roughly $54.28 billion based on a bitcoin price of $64,312 and listed an aggregate purchase cost of about $63.83 billion, with an average acquisition price of $75,653.

Company disclosures showed a quarterly bitcoin yield of negative 1.6%, a quarterly decline of 13,200 BTC and a dollar-denominated quarterly loss of $849 million. Year-to-date figures showed a 6.6% BTC yield, a net gain of 44,000 BTC and a dollar gain of $2.84 billion.

Between May 26 and May 31, Strategy sold 32 BTC for about $2.5 million at an average price near $77,135. On July 5 the firm sold 3,588 BTC for approximately $216 million, reducing the balance to 843,775 BTC. The company reported those bitcoin sales funded preferred-stock dividends and monthly payments. After the July bitcoin sale Strategy held $2.55 billion in cash.

During the week ended July 12 the company sold 4,818,781 shares of common stock, generating $466.7 million in net proceeds. About $450 million of those proceeds increased the U.S. dollar reserve to $3 billion as of July 12; the company noted some proceeds had not yet settled by the reporting date. Strategy reported the reserve provides roughly 20.4 months of coverage against $1.763 billion in annual preferred-stock dividend obligations and will support interest payments on outstanding debt.

Strategy’s bitcoin position represents about 4.02% of bitcoin’s fixed supply and roughly 66.8% of the bitcoin held by public companies. As of July 18, 197 public firms reported a combined total of about 1.263 million BTC. Michael Saylor has described corporate bitcoin adoption as ‘necessary, inevitable, and welcome’ for the asset’s development as a global monetary network.

Analysts at Bitfinex noted the company has authorization to sell up to $1.25 billion in bitcoin, a mechanism the analysts said provides defined liquidity options and reduces the likelihood of dilutive equity issuance or an unplanned sale if market conditions compress the company’s value metrics.

The next treasury and financing disclosure will show whether Strategy resumes purchases after the pause that began on June 22, keeps its current cash and bitcoin balances, or makes further sales. That report will detail how management is aligning bitcoin holdings with recurring financial obligations.