Key highlights:

  • Strategy has temporarily stopped its Bitcoin sales after two weeks of sell-off
  • The company has sold 334 million worth of MSTR stock to repurchase STRC shares
  • The firm repurchased $132 million worth of STRC shares

Michael Saylor’s Strategy (MSTR) has hit a pause on its Bitcoin sales after two straight weeks of liquidations. Instead of dumping its BTC holdings, the Bitcoin Treasury company has raised funds by selling its MSTR shares. The company sold about $334 million worth of MSTR stock last week, and used the proceeds to buy back STRC and pay dividends.

Strategy shifts focus from Bitcoin sales to MSTR

Strategy founder Michael Saylor shared an X post earlier today announcing the company’s latest reserve update. The Bitcoin treasury company has reportedly paused its BTC sell-off and is now focusing on selling MSTR shares.

By selling around 3.46 million MSTR stock, worth about $333.7 million, through its at-the-market (ATM) program, the company repurchased about $132 million worth of STRC shares. The firm still has about 21.7 million shares available for future issuance under the ATM program.

Specifically, Strategy used $132.2 million of the net proceeds to repurchase the STRC shares. Additionally, it allocated $52.4 million for STRC dividend payments. Another $149.1 million was sent into the company’s USD reserve, strengthening its cash position and financial flexibility. With this latest move, Strategy’s cash reserve has climbed to a staggering $4.8 billion.

Bitcoin sales on pause after two weeks

Strategy’s latest move also indicates that the company has temporarily paused its Bitcoin sales. During the last two consecutive weeks, Strategy continued to offload its Bitcoin holdings, selling about $213 million in total, as reported by CoinCodex.

Reportedly, Strategy sold about 1,690 BTC two weeks ago to fund its STRC buyback program. In the following week, it sold another 1,638 BTC. However, the latest filing reveals no Bitcoin sale, indicating that the company has temporarily paused its BTC sell-off.

As of now, Michael Saylor’s company holds about 840,447 BTC, maintaining its position as the largest Bitcoin treasury firm. Its total Bitcoin stash was acquired for around $63.36 billion, at an average purchase rate of $75,385 per coin. As the cryptocurrency is currently trading at a lower price range, the company is now facing an unrealized loss of about $8 billion.

Saylor breaks from his usual BTC update

Usually on Sundays, Michael Saylor shares a Bitcoin tracker chart, signaling a possible Bitcoin purchase. But his recent posts have become less predictable as Strategy has changed its tactics. Under the new Digital Credit Capital Framework, the company has placed tighter limits on how the USD reserves could be used.

Notably, the USD reserves are meant to cover preferred stock dividends and interest payments. The firm has also approved a $1 billion buyback program for its digital credit securities. In this program, its STRC shares are the focus. Also, the platform has launched another $1 billion repurchase program to buy back its common stock. Another major change in its strategy is the BTC Monetization Program that allows the sale of up to $5 billion in Bitcoin.

MSTR and STRC shares rise following Strategy’s latest move

Following Strategy’s latest development, both MSTR and STRC shares displayed moderately positive moves. This indicates that the Bitcoin treasury company’s changing strategy has grabbed the investors’ attention, reinforcing their confidence.

 

The MSTR stock price is currently marked at $95.48, marking a notable hike of 2.68% over the past 24 hours. Although the shares marked a 1.06% rise over the past month, they dropped by 1.5% over 5 days. At the same time, the STRC shares surged by a marginal 0.07%, reaching $94.90. While the shares increased slightly by 0.5% in the past five days, they exhibited a remarkable rally of nearly 12% in a month.