Key highlights:

  • Phong Le said the firm still intends to add more BTC to its treasury
  • This comes after recent sales of Bitcoin worth $108.6 million
  • Metaplanet moved millions in BTC as investors speculate on a sale

Strategy chief executive Phong Le tried to reassure investors that the company's Bitcoin holdings will start growing again before the year runs out. 

In an interview with Fox Business, he said the firm hopes to return to buying more BTC once it finishes building up its cash reserves and stabilizing its preferred stock, STRC.

Strategy’s sales were to support preferred stock and reserves

Last week, the company raised $108.6 million through the sale of 1,690 BTC. They also generated an additional $653.1 million from the sale of 6.59 million shares of common stock.

The proceeds were used to buy back 1,152,020 shares of its preferred stock in a bid to push the share price back to its $100 par value. 

The preferred stock is currently trading at $95.32. Additionally, the company has been working to build up its cash reserves so it can maintain the payment of dividends on its preferred stock. The reserves now sit at $4.65 billion. 

Le said in the interview that liquidity is the firm's priority at the moment but would return to buying more coins once it stabilizes.

“When Stretch gets back to par, we'll issue more. We'll buy more Bitcoin," he said.

The average purchase price on Strategy’s Bitcoin holdings is $75,385. This means the recent sales were done at a loss relative to current market prices. 

Despite that, management said the moves were a short-term trade-off to protect the capital structure.

MSTR shares have fallen over 76% over the past 12 months and are trading at $96.09. This shows just how much pressure the stock has faced in recent times.

Other Bitcoin treasury firms are also on the move

Lookonchain data highlighted that Metaplanet moved 3,881 BTC, worth $247 million, between its own wallets on Wednesday.

The transfer went from cold storage to new addresses still controlled by the company, not to an exchange, which means it may not suggest a sale or add to tradable supply.

The firm has followed this pattern in the past. They moved almost 5,000 BTC in March in a similar sequence of test transactions followed by larger transfers. Analysts at the time read that activity as internal custody reshuffling, and nothing in Wednesday's transfer suggests otherwise. 

Metaplanet currently holds 43,000 BTC bought at an average price of about $96,000, which means the firm is sitting on an unrealized loss of $1.4 billion. The firm has been one of the top corporate buyers since April 2024, aiming to own up to 210,000 BTC.

Meanwhile, another Bitcoin treasury firm, Empery Digital, offloaded $102 million in BTC between July 1 and August 6 in order to pay off its debts.