Strategy Makes A Crucial Move To Secure Its Future

In an unstable crypto market, Strategy, one of the largest holders of Bitcoin, raised $747.8 million by selling shares, while suspending its BTC purchases. This decision highlights a desire to secure its finances amid market volatility. A strong signal for the crypto ecosystem, which could influence other companies adopting similar strategies.

The share sale and strengthening of dollar reserves

Last week, Strategy made an important strategic decision by selling 4.535 million Class A shares, while the company just avoided the cut during the first Nasdaq 100 rebalance.

This operation generated net proceeds of $747.8 million and allowed the company to strengthen its dollar reserve.

Here are the key facts to remember :

• The amount generated : $747.8 million from the sale of 4.535 million Class A shares of Strategy (MSTR) ;

• The purpose of the sale : to strengthen U.S. dollar reserves to support dividend payments and cover part of the company’s debts ;

• The current dollar reserve : after this operation, the company’s cash holdings now reach $2.19 billion ;

• The bitcoin reserve : Holdings remain at 671,268 BTC ;

• The dollar reserve strategy : the company’s stated goal is to maintain a reserve sufficient to cover 12 months of dividends, with the ambition to extend this reserve to 24 months ;

• No preferred stock sales : Strategy chose not to sell preferred shares during this period.

This operation takes place in a context where the crypto market is going through a turbulent period, affecting the valuation of the company’s cryptocurrencies. By acting this way, Strategy aims to stabilize its financial situation while continuing to play a major role in the Bitcoin ecosystem.

The slowdown in Bitcoin purchases: a strategic adjustment in response to market volatility

The slowdown in Bitcoin purchases marks a turning point for Strategy, which until now had pursued an aggressive Bitcoin treasury strategy, accumulating thousands of BTC in hopes of capitalizing on their price increase.

However, this strategy appears to pause in the current bearish crypto market context. Michael Saylor and his team have clearly stated that the company made no new Bitcoin purchases during the period from December 15 to 21.

Strategy’s last purchase, dating back to December 15, involved 10,645 BTC, acquired for $980.3 million at an average price of $92,098 per bitcoin. However, this purchase is part of a series of decisions that show a more measured adoption of crypto as a reserve asset, unlike the time when the company was making massive purchases at any cost.

The halt in purchases could be seen as a cautious response to an uncertain market, where falling prices and the slow recovery of the crypto market make this strategy less attractive in the short term.

While the Bitcoin price remains under pressure, Strategy’s decision to adjust its reserves could signal a change in direction for other companies in the sector. Although this pause in BTC purchases seems necessary in light of volatility, it raises questions about the long-term viability of Bitcoin treasury strategies during a crisis.